Fri, 16 Nov 2018
18
Sydney

China to step up range of tax deductions for residents

Australian News
22 Oct 2018, 15:16 GMT+10

BEIJING, China – In a bid to boost the economy, China is to allow an increasing number of items as deductions for personal income tax.

The measures add to the concessions already introduced earlier this month.

China revised its tax structure to allow a raft of deductions, with the new structure coming into effect from October 2019.

Those concessions allowed for additional deductions on 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,” said a statement from China’s Ministry of Finance and the State Taxation Administration.

Children’s education can now be included in tax returns as a deduction up to 12,000 yuan ($1,729) annually.

Where people don’t own their own home and are renting in the same city or toiwn where they are employed, will be allowed a deduction of up to 14.400 yuan ($2,075) a year.

Following public consultation, which is open until 4 November 2018, a final version of the tax structure will apply from 1 January next year. 

In the measures introduced this month, China increased the threshold for personal income tax exemption was from 3,500 yuan ($504) to 5,000 ($720) yuan per month, for an annual total of 60,000 yuan ($8,640).

More Australia News

Access More

Sign up for Australian News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!