Abstract: The modern fiscal and tax system with Chinese characteristics is composed of the modern budget system, the modern tax system, the modern intergovernmental fiscal relations, the modern financial macro-control mechanism and other subsystems, which plays a key role in leading and guaranteeing the development in the process of Chinese path to modernization. After 30 years of reform of the tax sharing system, China’s modern fiscal and tax system has been established and continuously improved, and it is shouldering the mission of serving the socialist market economy system with Chinese characteristics and the construction of Chinese path to modernization. However, there are still five problems and challenges in the current fiscal and taxation system, including the unclear boundary in the relationship between government and market, the need to strengthen the resource coordination and performance management capabilities of the current budget system, the challenges posed by the digital economy to the modern tax systems, the need to improve the relationship between the central and the local finances, and the challenges posed by the narrowing of traditional policy space to the macroeconomic regulation mechanism of finance. The Third Plenum of the 20th Central Committee of the Communist Party of China explicitly proposed to“deepen the reform of the fiscal and taxation system”. Therefore, to further improve the modern fiscal and taxation system with Chinese characteristics, in the future, China should start from clarifying the boundary between the government and the market, strengthening the budget planning ability and improving the budget performance management efficiency, deepening the reform of the tax system, deepening the reform of the division of powers and expenditure responsibilities, giving full play to the coordination role of fiscal policy and monetary policy, so as to use the modern fiscal and taxation system to serve the construction of Chinese path to modernization and“escort”the high-quality development.

Key words: tax-sharing system reform, modern fiscal and tax system with Chinese characteristics, Chinese modernization, socialist market economy system, high-quality development