The management innovation of personal income tax system by comparation between China and Canada

Personal income taxation influences the economy and the amounts one earns, spends, saves, and consumes. As China´s domestic economy is fast expanding and individual´s income is significantly increased, Chinese Finance Department pays more attention to management innovation of personal income tax system. Business has become more global, and knowing the essence of the approaches to international personal taxation is a necessity. However, deficits, changing demographics, and taxpayer behavior, as well as volatile economies, continue to result in multitudes of new rules, amendments, and more recently, tax reform. Over the years, the Act has developed many legislation, regulations, and definitions. With this magnitude of rules, it has become increasingly necessary to study personal income tax system. It would be beneficial from studying the differences between Chinese system and international systems and would stimulate the government to manage innovation under the Knowledge Economy environment eventually.