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China unveils draft measures on individual income tax deductions

Source: Xinhua| 2018-10-20 22:21:24|Editor: zh
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BEIJING, Oct. 20 (Xinhua) -- Chinese authorities on Saturday unveiled draft temporary measures on special additional deductions from taxable personal incomes to collect public opinions in the next two weeks.

China's revised individual income tax law that came into force this month added special additional deductions from taxable incomes for children's education, continuing education, treatment for serious diseases, caring for the elderly, as well as housing loan interests and rents.

The temporary deduction rules were made under the principles of being fair and reasonable, simple and easy to implement, effectively reducing burdens of the people, and improving their lives, according to the Ministry of Finance and the State Taxation Administration.

For children's education, an amount of 12,000 yuan (about 1,729 U.S. dollars) will be deducted each year from the parents' taxable income for a child's education.

Housing rent deduction of up to 14,400 yuan each year will be granted to taxpayers owning no housing in the city where they work, according to the draft rules.

After hearing opinions from the public from now to Nov. 4, 2018, the final version will be put into effect on Jan. 1, 2019.

China started implementing a new standard for individual income tax from October. The threshold for personal income tax exemption was raised from 3,500 yuan to 5,000 yuan per month or 60,000 yuan per year.

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