Circular on Seeking Public Comments on the Interim Measures for Additional Special Deductions for Individual Income Tax (Draft for Comment)
Circular on Seeking Public Comments on the Interim Measures for Additional Special Deductions for Individual Income Tax (Draft for Comment)
Circular on Seeking Public Comments on the Interim Measures for Additional Special Deductions for Individual Income Tax (Draft for Comment)
October 20, 2018
In order to implement the new Individual Income Tax Law adopted by the Standing Committee of the National People's Congress on August 31, we have drafted and released the Interim Measures for Additional Special Deductions for Individual Income Tax (Draft for Comment) for public comments. The public may send comments through the following channels, prior to November 4, 2018:
1. logging onto the "Information Management System for Soliciting Opinions on Financial Laws and Regulations" (http://lisms.mof.gov.cn/lisms/action/loginAction.do?loginCookie=loginCookie) on the homepage of the website of the Ministry of Finance of the People's Republic of China (http://www.mof.gov.cn).
2. sending correspondence to the address: No.3 Nansan Lane, Sanlihe, Xicheng District, Beijing (Postal Code: 100820), the Law and Treaty Department of the Ministry of Finance, indicating the words "Soliciting Opinions on the Additional Special Deductions for Individual Income Tax" on the envelope.
Interim Measures for Additional Special Deductions for Individual Income Tax (Draft for Comment)
Chapter I General Provisions
Article 1 The Interim Measures for Additional Special Deductions for Individual Income Tax (Draft for Comment) (the "Measures") are hereby formulated in accordance with the Individual Income Tax Law of the People's Republic of China.
Article 2 Additional special deductions for individual income tax shall be deducted from the overall taxable income of a taxpayer in the current year. Those that cannot be deducted in full in the current year may not be carried forward to the next year for deduction.
For the purpose of the Measures, the additional special deductions for individual income tax refer to six types of additional special deductions of expenses for children's education, expenses for continuing education, medical expenses for serious diseases, housing mortgage interest, house rent, and elderly care expenses as provided in the Individual Income Tax Law.
Article 3 The additional special deductions for individual income tax shall be carried out in line with the principles of fairness, reasonableness, convenience, alleviating burdens on taxpayers and improving people's livelihood.
Article 4 The scope of and standard for the additional special deductions shall be adjusted promptly in light of changes to expenses for people's livelihood such as education, housing and medical treatment.
Chapter II Additional Special Deduction for Children's Education
Article 5 Expenses for pre-school education and academic education of children of a taxpayer shall be deducted as per the standard quota of CNY12,000 for each child per year (CNY1,000 per month).
The pre-school education as mentioned in the preceding paragraph includes education from the age of three to primary school. The academic education includes compulsory education (primary school and junior middle school education), senior high school education (general senior secondary school and secondary vocational education) and higher education (junior college, undergraduate, postgraduate and doctoral education).
Article 6 The additional special deduction for children's education shall be deducted as per 50% of the deduction standard for the father and mother of a child receiving education respectively; upon agreement by the parent, it may be deducted as per 100% of the deduction standard for the father or the mother.
......
October 20, 2018
In order to implement the new Individual Income Tax Law adopted by the Standing Committee of the National People's Congress on August 31, we have drafted and released the Interim Measures for Additional Special Deductions for Individual Income Tax (Draft for Comment) for public comments. The public may send comments through the following channels, prior to November 4, 2018:
1. logging onto the "Information Management System for Soliciting Opinions on Financial Laws and Regulations" (http://lisms.mof.gov.cn/lisms/action/loginAction.do?loginCookie=loginCookie) on the homepage of the website of the Ministry of Finance of the People's Republic of China (http://www.mof.gov.cn).
2. sending correspondence to the address: No.3 Nansan Lane, Sanlihe, Xicheng District, Beijing (Postal Code: 100820), the Law and Treaty Department of the Ministry of Finance, indicating the words "Soliciting Opinions on the Additional Special Deductions for Individual Income Tax" on the envelope.
Interim Measures for Additional Special Deductions for Individual Income Tax (Draft for Comment)
Chapter I General Provisions
Article 1 The Interim Measures for Additional Special Deductions for Individual Income Tax (Draft for Comment) (the "Measures") are hereby formulated in accordance with the Individual Income Tax Law of the People's Republic of China.
Article 2 Additional special deductions for individual income tax shall be deducted from the overall taxable income of a taxpayer in the current year. Those that cannot be deducted in full in the current year may not be carried forward to the next year for deduction.
For the purpose of the Measures, the additional special deductions for individual income tax refer to six types of additional special deductions of expenses for children's education, expenses for continuing education, medical expenses for serious diseases, housing mortgage interest, house rent, and elderly care expenses as provided in the Individual Income Tax Law.
Article 3 The additional special deductions for individual income tax shall be carried out in line with the principles of fairness, reasonableness, convenience, alleviating burdens on taxpayers and improving people's livelihood.
Article 4 The scope of and standard for the additional special deductions shall be adjusted promptly in light of changes to expenses for people's livelihood such as education, housing and medical treatment.
Chapter II Additional Special Deduction for Children's Education
Article 5 Expenses for pre-school education and academic education of children of a taxpayer shall be deducted as per the standard quota of CNY12,000 for each child per year (CNY1,000 per month).
The pre-school education as mentioned in the preceding paragraph includes education from the age of three to primary school. The academic education includes compulsory education (primary school and junior middle school education), senior high school education (general senior secondary school and secondary vocational education) and higher education (junior college, undergraduate, postgraduate and doctoral education).
Article 6 The additional special deduction for children's education shall be deducted as per 50% of the deduction standard for the father and mother of a child receiving education respectively; upon agreement by the parent, it may be deducted as per 100% of the deduction standard for the father or the mother.
......