China starts special individual income tax deductions

The State Council, China’s cabinet, announced special individual income tax

deductions on Saturday, in order to lower the tax burden for those who have certain expenditures.

Those expenditures cover six areas, including children’s education, continuing education, health treatment for serious diseases, housing loan interests, rent and elderly care.

The new temporary measures will come into effect along with the amended personal individual income tax law on Jan. 1, 2019.

For children’s education, an amount of 1,000 yuan (about 145 U.S. dollars) will be deducted every month from the parents’ taxable income for each child’s education from preschool all the way to doctoral education, including technical education.

Taxpayers who are receiving continuing education can also enjoy the deduction of 400 yuan a month for 48 months at most for a degree or 3,600 yuan in total for professional qualifications education.

 

China starts special individual income tax deductions

The State Council, Chinas cabinet, announced special individual income tax deductions on Saturday, in order to lower the tax burden for those who have certain expenditures. Those expenditures cover six areas, including childrens education, continuing education, health treatment for serious diseases, housing loan interests, rent and elderly care. The new temporary measures will come into effect along with the amended personal individual income tax law on Jan. 1, 2019. For childrens education, an amount of 1,000 yuan (about 145 U.S. dollars) will be deducted every month from the parents taxable income for each childs education from preschool all the way to doctoral education, including technical education. Taxpayers who are receiving continuing education can also enjoy the deduction of 400 yuan a month for 48 months at most for a degree or 3,600 yuan in total for professional qualifications education.