Concept and Constituent Elements of Tax Law

(I) Concept of tax law
Tax law is a general term for the legal norms formulated by the State to regulate the rights and obligations between the State and taxpayers in terms of taxation. Tax law can be classified differently based on the different legislative purposes, tax sources, division of powers and functions, scope of application, and functions and roles. Usually, tax law is divided into substantive tax law and procedural tax law based on their different functions and roles.
(II) Constituent elements of tax law
The constituent elements of tax law refer to the necessary factors and contents that tax law should possess. The constituent elements of tax law should generally include tax leviers, taxpayers, tax sources, tax items, tax rates, basis of taxation, taxable stage, tax payment periods, tax payment places, tax reductions and exemptions, legal liabilities, etc. Wherein, taxpayers, tax sources, and tax rates are the three most fundamental elements of tax law.
(1) Tax leviers. Tax leviers refer to tax authorities at all levels and other tax collection agencies that exercise tax collection and management powers and functions on behalf of the State. Due to different types of taxes, there may be different tax leviers.
(2) Taxpayers. Taxpayer, also known as ratepayer, refer to the entity and individual obligated to directly pay taxes as stipulated by tax law. Taxpayers may be natural persons, legal entities, or other social organizations.
(3) Tax sources. Tax source, also known as the object of taxation, refers to the object which is being taxed, and is the common target of rights and obligations in the legal relationship of taxation. Tax sources include things and acts, which are the main indicators to distinguish different types of taxes.
(4) Tax items. Tax items refer to the specific items of tax sources specified in tax law, are the specific basis for taxation, and specify the specific scope of tax sources.
(5) Tax rate. Tax rate refers to the ratio or quota to levy tax on the taxable amount and tax source, and is the measure for calculating the tax amount. Tax rate is the core element of tax law. The current tax rates in China mainly include proportional tax rates, fixed tax rates, and progressive tax rates.
(6) Basis of taxation, also known as tax standard, refers to the basis or standard for calculating the amount of tax payable by taxpayers. Basis of taxation can be divided into three forms: price-based taxation, quantity-based taxation, and compound taxation.
(7) Tax payment period. Tax payment period refers to the period during which a taxpayer is required to pay taxes in accordance with the law after incurring tax obligations. Tax payment period can be divided into two types: regular tax payment and tax payment on a transaction basis.
(8) Taxable stages. Taxable stages refer to the stages during the process from production to consumption for which taxes are required to be paid on the tax sources as stipulated by tax law.
(9) Tax payment places. Tax payment place refers to the specific place where a taxpayer declares and pays taxes to the tax authority in accordance with tax law. The tax payment places stipulated in tax law mainly include place of premium, place of business, place of property, and place of customs declaration.
(10) Tax relief. Tax relief refers to the special provisions whereby the State encourages and favors certain taxpayers and tax sources. It mainly includes the following three aspects: tax reduction and exemption, threshold, and exemption amount.
(11) Legal Liabilities. Legal liabilities refer to the penalties imposed on those who violate the provisions of tax law. The legal liabilities for violating tax law include administrative liability and criminal liability.
According to China's taxation rules, the current taxes in China mainly include VAT, consumption tax, business tax, customs duty, corporate income tax, income tax for exclusively foreign-owned enterprises and foreign enterprises, personal income tax, resource tax, urban land use tax, real estate tax, urban real estate tax, vehicle purchase tax, vehicle and vessel use tax, etc.