Current Status and Suggestions on Tax Collection and Management of Education in China

Current Status and Suggestions on Tax Collection and Management of Education in China

In recent years, with the development of the national economy, in order to supplement the shortage of national education funds, the state has increased the support for private education. The State Council has enacted the "Regulations on Schools for Social Forces". The National People's Congress passed the "Private Education Promotion Law" and formulated the policy of "active development, strong support, strengthening management, and correct guidance". Private education has achieved considerable development. According to statistics, there are currently more than 70,000 private schools of all types and at all levels in the country, with a total of 14.16 million students. At the same time that all kinds of private education are booming, the tax issue has become a problem that cannot be ignored. Then what are the problems with the status quo of education and the tax collection and management?

I. Current status of tax collection and management of education in China

According to statistics, the city has been approved by the relevant departments to establish a variety of private schools of all levels, × ×, the school students × × 10,000 people. Among them, the educational institutions approved by the education department are mainly educational institutions that hold academic education and cultural tuition, pre-school education, and self-study, and the educational institutions approved by the labor department for the implementation of vocational training for labor and employment. Judging from the statistics of the local taxation department of the city, the city currently has a variety of social forces to run classes and schools, and the number of students in the school is different from that of the education department. Among them, the relevant procedures have been handled in the local taxation department and incorporated into the normal taxation. There are XX households in the collection and management. In the first half of 2004, business tax, corporate income tax, personal income tax, urban construction, and education additional XX yuan were collected.

Second, the main problems in the tax collection and management of education in our citizens

Tax source base is not easy to control

According to the relevant provisions of the "Private Education Promotion Law": "People-run schools that implement academic education, pre-school education, self-study exams, and other cultural education shall be examined and approved by the education administrative department of the people's government at or above the county level in accordance with the permission of the state; The privately-run schools that employ vocational skills-based vocational qualification training and vocational skills training shall be examined and approved by the labor and social security administrative departments of the people's governments at or above the county level in accordance with the permission of the state, and copied to the educational administrative department at the same level for filing. At the same time, private education institutions are required to submit relevant materials such as preparation reports, school regulations, asset certificates, distribution plans, etc. to the approval department in order to have a detailed understanding of the school situation. The fees charged by private schools are approved by the price department. As a tax collection management department, the local taxation department does not have any approval authority for all aspects of the establishment of private schools. There are no restrictions. It is difficult to grasp the detailed base and related assets, funds and distribution of the school without coordination and coordination of relevant departments. And other specific information. Only relying on limited manpower and time to increase inspection efforts, the effect is not satisfactory. Take the city as an example: the education and labor departments of the city have approved the establishment of more than 812 private schools of all types and at all levels. The taxation department has only 187 households, and only 92 households are included in the normal management. In addition, some small private educations appear in the form of training courses and remedial classes. They do not have their own assets. The school facilities are all rented. All the teachers are employed. The teaching period is not fixed. Some teach all day, and some only Using holidays, holidays, or evening classes, the mobility is large, the concealment is strong, and the three certificates are incomplete or not at all. This kind of base taxation department is even more difficult to control.

Due to policy differences and unclear regulations, the problem of collection and management

First, because Article 46 of the Law on the Promotion of Private Education stipulates that “private schools enjoy the preferential tax policies stipulated by the state”, there is no explanation for those specific benefits that private schools should enjoy. Therefore, during the investigation, it was found that both the privately-run schools and the education departments generally believed that private education is a social welfare undertaking, just like public education. Therefore, tax incentives should be given to private education. In other words, private education can be considered Taxation; Second, Article 6 of the "Provisional Regulations on Business Tax of the People's Republic of China" stipulates: "Educational services provided by schools and other educational institutions, and labor services provided by students for work-study are exempt from business tax", resulting in many units and individuals who do not understand tax knowledge. It is misunderstood that the education income provided by the school is not subject to business tax. In fact, the educational services referred to here refer only to the education services provided by ordinary schools and the administrative departments of the people's governments at or above the city level, the municipal government or the government at the same level, and the various types of schools that the state recognizes the qualifications. The third is that the private schools are the same. Public schools are also social welfare undertakings. Public schools do not pay income tax, and private schools should not pay. In essence, the collection of corporate income tax is not based on public or private, but is determined according to the source of income. The income of public schools is included in the financial special accounts, and the private schools are generally not included in the financial special accounts. The relevant income tax policy stipulates that the income earned by individuals holding various types of schools and the use of personal income tax for improving school conditions are only levied on the part used for personal consumption. In practice, it is difficult to distinguish between them; in addition, private schools have various forms of establishment, such as purely personal investment, institutional investment, joint investment by institutions and natural persons, and joint investment by natural persons, in which corporate income tax or personal income tax is imposed on them. There are also differences in the issue. Due to the existence of these factors, the tax authorities have encountered great resistance in the process of tax collection and management of various private schools.

Lack of effective control measures

The taxation department cannot participate in the establishment, assessment, and acceptance of various private schools. In addition, the education departments at all levels have protectionist ideas on the taxation of private education. They do not actively cooperate and do not provide relevant data and information in a timely manner. It is difficult for the tax authorities to control from the source. In addition, most private schools do not use legal bills supervised by the taxation department during the charging process. Some use white papers, some use self-made receipts, some use the receipts of administrative institutions, and the tax department is difficult to grasp the income situation. The necessary control measures.

Teachers have income tax revenues from multiple sources

At present, there are 13,847 teachers in various private schools in the city, including 9197 full-time teachers, accounting for 66.4% of the total number of teachers. The main source is retired teachers and social recruitment; 4650 part-time teachers, accounting for 33.6% of the total number of teachers, the main source is In-service teachers in each school. Regardless of the quality of the personal income tax withholding work in private schools, only these part-time teachers have not reported on the incomes obtained from multiple places, which will inevitably lead to the loss of personal income tax.

III. Suggestions on Strengthening Tax Administration of Private Education

First, we must do a good job in tax law propaganda. It is necessary to take the door to explain, distribute publicity materials, newspapers and periodicals, TV announcements and other forms to do taxation propaganda work. In view of the deviation of the current education department and various private schools in the understanding of tax policy, the focus should be on the interpretation of the deviation between the tax policy and the relevant provisions of the education department. It is necessary to clarify the tax liability, emphasize the punishment measures, and completely eliminate the kind of “enjoying the country”. The prescribed tax preferential policies are the wrong ideas of not paying taxes, and increase the initiative and consciousness of tax payment.

The second is to strengthen departmental cooperation and form a joint force. The taxation department should actively strengthen the ties with the education, labor, civil affairs, and price departments, do a good job in propaganda and interpretation, and seek government support when necessary. Through contact with labor, education and other departments, we must timely grasp the relevant knowledge of private education institutions, grasp the tax base and related assets, personnel composition, income distribution, etc.; through the contact with the price department, timely grasp all kinds of private education institutions Changes in the fees, and then grasp their income, do a good job of collection management. It is necessary to establish a contact regular meeting system through certain channels and exchange information on a regular basis. At the same time, the taxation department should also give play to its own advantages and timely report tax information to other departments, especially the tax incentive information for private education, and change the attitude of the past for taxation, in line with the principle of mutual support and common development. Do a good job. We can follow the annual review system for school-run and welfare enterprises, and strive to formulate joint control measures. The taxation department provides policy support according to the provisions of national policies, actively participates in the identification and review of private education institutions, and approves the filing. The joint annual review system and other systems are well controlled for the source of all types of private education. In view of the various types of temporary work, the mobility of running schools is strong, the concealment is strong, and the education department is also difficult to control the actual situation. The personnel are dispatched, and the education inspection department is responsible for the special inspection and management of various temporary classes and schools. Achieve a win-win situation.

The third is to implement classified management and differentiated treatment. First of all, it is necessary to highlight key points and seize the large-scale social forces to run classes and run schools, especially the registration and registration of schools that have been registered or registered in the education department, and strictly follow the tax policy to do everything from registration to collection to daily tax administration. To improve the management level and ensure that the big ones are not leaked, the tax management is moving towards formalization; secondly, according to its characteristics, during the summer and winter holidays, the focus is on cleaning up, intensifying inspections, plugging loopholes and registering for registration. Analyze the trend of change and manage it; for ordinary households who normally operate normally, they should be managed and monitored by the tax offices of each office in conjunction with the changes in the new financial system, giving full play to the advantages of the office.

The fourth is to accurately grasp the policy provisions and do a good job in the collection and management. Local taxation departments at all levels should further strengthen business learning, combine relevant knowledge of private education, accurately grasp policy boundaries, and do a good job in tax collection and management of various types of private schools at all levels. For private non-academic education, business tax shall be levied in strict accordance with the provisions of the Business Tax Regulations; if the income from private education is not included in the financial special account for management, the income shall be treated differently according to the regulations, and the enterprise income tax or personal income tax shall be separately imposed. In cases where it is indeed funded by pure natural persons, individual income tax shall be levied in accordance with the relevant provisions of the sole proprietorship or partnership enterprise; privately-owned schools that meet the relevant regulations and enjoy preferential tax policies shall also be responsible for the withholding and payment of personal income tax. Incorporate all types of private schools at all levels into normal tax administration. In actual work, we must strictly grasp the policy, pay attention to methods and methods, and avoid artificially increasing the contradiction.

The fifth is to give full play to the personal income tax collection and management software functions, do a lot of income audit work, and block tax loopholes. For private schools that have been included in normal tax administration, it is necessary to strengthen the management of the personal income tax of teachers. Give full play to the advantages of the city's personal income tax collection and management software, use the ID number as the personal unique identification code, establish a personal payment income inventory, audit the income of various part-time teachers in multiple places, and check for missing vacancies.