Good News︱Individual Income Tax Reduction Policy Announced!

Good News︱Individual Income Tax Reduction Policy Announced!

Major news in 2019!

2019年的重大新闻!

Announcement of Tax Reduction Policies and 6 Special Deductions

The revised regulations for the implementation of the Personal Income Tax Law will be implemented simultaneously with the new Personal Income Tax Law from January 1, 2019.

个税减税政策公布,6大专项扣除,修订后的个人所得税法实施条例将自2019年1月1日起与新个人所得税法同步施行

In this new tax policy, besides raising the starting point to 5000 RMB

在此次个税新政策中,除了起征点提高到5000元以外

Most concerned about children's education, continuing education, serious illness medical treatment

最受关注的就数对于子女教育、继续教育、大病医疗

Special additional deduction of personal income tax including interest on housing loans or six items of housing rent and support for the elderly

住房贷款利息或者住房租金、赡养老人共6项在内的个人所得税专项附加扣除

Among them, foreigners can enjoy this policy only if they have lived in China for 183 days.

其中外籍人士可享受该政策需符合在中国境内居住满183天

A new special tax policy can be enjoyed if a single departure does not exceed 30 days.

单次离境时间不超过30天,就可以享受新个税专项政策

On the Policy of Allowances and Subsidies for Foreign Individuals
关于外籍个人有关津补贴的政策

During the period from January 1, 2019 to December 31, 2021, foreign individuals who meet the personal conditions of residents may choose to enjoy the special additional deduction of personal income tax.

2019年1月1日至2021年12月31日期间,外籍个人符合居民个人条件的,可以选择享受个人所得税专项附加扣除

Regulations

规定

You may also choose to follow the Circular of the State Administration of Taxation of the Ministry of Finance on Some Policy Issues of Individual Income Tax (Fiscal and Taxation No. 20, 1994).

也可以选择按照《财政部 国家税务总局关于个人所得税若干政策问题的通知》(财税〔1994〕20号)

Notice of the State Administration of Taxation on the Execution of Individual Income Tax on Subsidies Obtained by Foreign Individuals (State Tax Issue [1997] 54)

《国家税务总局关于外籍个人取得有关补贴征免个人所得税执行问题的通知》(国税发〔1997〕54号)

Notice of the State Administration of Taxation of the Ministry of Finance on the Collection and Exemption of Individual Income Tax by Foreign Individuals from Subsidies such as Housing in Hong Kong and Macao (Fiscal and Tax [2004] 29)

《财政部 国家税务总局关于外籍个人取得港澳地区住房等补贴征免个人所得税的通知》(财税〔2004〕29号)规定

They shall enjoy preferential tax-free policies such as housing allowances, language training fees and children's education fees, but they shall not be enjoyed at the same time.

享受住房补贴、语言训练费、子女教育费等津补贴免税优惠政策,但不得同时享受

Once a foreign individual has chosen to do so, he may not change it within a tax year.

外籍个人一经选择,在一个纳税年度内不得变更

Tip: Since January 1, 2002, foreign individuals no longer enjoy preferential policies of housing allowance, language training allowance and children's education allowance. They should enjoy special additional deduction according to regulations.

小提示:自2022年1月1日起,外籍个人不再享受住房补贴、语言训练费、子女教育费津补贴免税优惠政策,应按规定享受专项附加扣除

1、Children's Education

1、子女教育

Taxpayer's children receive full-time education (pre-school education and Diploma education) related expenditures, according to the standard quota of 1000 yuan per child per month.

纳税人的子女接受全日制学历教育(学前教育和学历教育)的相关支出,按照每个子女每月1000元的标准定额扣除。

Parents can choose to deduct 100% of the deduction standard by one of them or 50% of the deduction standard by both sides. The specific deduction method can not be changed in a tax year.

父母可以选择由其中一方按扣除标准的100%扣除,也可以选择由双方分别按扣除标准的50%扣除,具体扣除方式在一个纳税年度内不能变更

2、Continuing Education

2、继续教育

Taxpayers'expenditure on continuing education in China shall be deducted in accordance with the quota of 400 RMB per month for continuing education with academic qualifications (degrees) and 3600 RMB for continuing education with professional qualifications of skilled or technical personnel in the current year.

纳税人在中国境内接受继续教育的支出,按照学历(学位)继续教育每月400元、技能人员或专业技术人员职业资格继续教育当年3600元的定额扣除。

Continuing vocational education for skilled or professional technicians shall be deducted by the taxpayer himself who receives the education. 

Continuing education with bachelor's degree or above shall be deducted by the taxpayer who receives the education himself; continuing education with bachelor's degree or below may be deducted by the taxpayer who receives the education himself or by his parents according to the education of his children.

技能人员或专业技术人员职业资格继续教育,由接受教育的纳税人本人扣除。本科以上学历(学位)继续教育,由接受教育的纳税人本人扣除;本科及以下学历(学位)继续教育,可以选择由接受教育的纳税人本人扣除,也可以选择由其父母按照子女教育扣除

3、Interest on housing loans

3、住房贷款利息

Oneself or oneself spouse, either alone or jointly, use commercial banks or housing provident fund personal housing loans to purchase housing in China for myself or my spouse

And the interest expenditure on the first set of housing loans incurred shall be deducted according to the standard quota of 1000 yuan per month.

本人或者配偶,单独或者共同使用商业银行或住房公积金个人住房贷款,为本人或配偶购买中国境内住房,而发生的首套住房贷款利息支出,按照每月1000元的标准定额扣除。

By agreement between husband and wife, one of them may choose to deduct it. After the selection is confirmed, it can not be changed in a tax year.

The first housing loan that the couple purchased separately before marriage, the interest expenditure of the loan, after marriage, they can choose one of the houses they purchased

Which can be deducted by 100% of the deduction standard by the purchaser or 50% of the deduction standard by the couple respectively. The specific deduction method can not be changed in a tax year.

经夫妻双方约定,可以选择由其中一方扣除。选择确定后,一个纳税年度内不能变更。夫妻双方婚前分别购买住房发生的首套住房贷款,其贷款利息支出,婚后可以选择其中一套购买的住房,由购买方按扣除标准的100%扣除,也可以由夫妻双方对各自购买的住房分别按扣除标准的50%扣除,具体扣除方式在一个纳税年度内不能变更

4、Housing rent

4、住房租金

Taxpayers themselves and their spouses who incur rental expenditure for housing without their own housing in major working cities may deduct it in accordance with the following standard quotas

Municipalities directly under the Central Government, provincial capitals (capital) cities, cities with separate plans, and other cities determined by the State Council 1500 yuan per month; in addition to the cities mentioned above

Cities with a registered population of more than 1 million people in municipal districts have 1,100 yuan per month and registered residents in municipal districts have 1,000 yuan per month. 

Cities with a population of no more than 1 million people (including) pay 800 yuan a month.

纳税人本人及配偶在主要工作城市没有自有住房而发生住房租金支出的,可以按照以下标准定额扣除:直辖市、省会(首府)城市、计划单列市,以及国务院确定的其他城市每月1500元;除上述城市以外,市辖区户籍人口超过100万人的城市每月1100元,市辖区户籍人口不超过100万人(含)的城市每月800元

Housing rental expenditure shall be deducted by the lessee who has signed the rental housing contract. If the main working cities of both spouses are the same, and both spouses have no housing in the locality and rent their houses separately

They can only choose one side to deduct; if the main working cities of both spouses are different, and both spouses have no housing in both places and rent their houses separately, they can deduct according to the stipulated standards.

住房租金支出由签订租赁住房合同的承租人扣除。如夫妻双方主要工作城市相同,且双方在当地均没有住房而各自租赁住房的,只能选择一方扣除;如夫妻双方主要工作城市不同,且双方在两地均没有住房而各自租赁住房的,可按规定标准分别进行扣除

5、Supporting the Old

5、赡养老人

Taxpayers'support expenditure for a parent aged 60 or above can be deducted according to the standard quota of 2,000 yuan per month for the only child and 2,000 yuan for the non-only child (the amount per person can not exceed 1,000 yuan).

Specific allocation methods include equalization, agreed allocation and appointed allocation by the elderly; written allocation agreements should be signed for the appointed allocation, which takes precedence over the agreed allocation; specific allocation methods and quotas can not be changed within a tax year after they are determined.

纳税人赡养一位及以上年满60岁父母的赡养支出,可以按照独生子女每月2000元、非独生子女分摊每月2000元(每人分摊的额度不能超过1000元)的标准定额扣除。具体的分摊方式包括均摊、约定分摊、老人指定分摊;约定或指定分摊的,需签订书面分摊协议,指定分摊优先于约定分摊;具体分摊方式和额度确定后,在一个纳税年度内不能变更。

The deduction subject of special additional deduction for supporting the elderly is the maintenance obligor

Including the children of the dependent (children born in wedlock, children born out of wedlock, stepchildren, adoptive children) and grandparents whose children have passed away, grandparents'grandchildren and grandchildren.

赡养老人专项附加扣除的扣除主体是赡养义务人,包括被赡养人的子女(婚生子女、非婚生子女、继子女、养子女)和子女均已去世的年满60岁的祖父母、外祖父母的孙子女、外孙子女

6、Medical treatment of serious diseases

6、大病医疗

In a tax year, the medical expenses related to basic medical insurance incurred by the taxpayer, after deducting the personal burden 

(referring to the self-paid part within the scope of the medical insurance catalogue) accumulated over 15,000 yuan, shall be deducted by the taxpayer according to the facts within the limit of 80,000 yuan when handling the annual settlement and settlement.

在一个纳税年度内,纳税人发生的与基本医保相关的医药费用支出,扣除医保报销后个人负担(指医保目录范围内的自付部分)累计超过15000元的部分,由纳税人在办理年度汇算清缴时,在80000元限额内据实扣除

The medical expenses incurred by taxpayers may be deducted by themselves or their spouses; the medical expenses incurred by minor children may be deducted by one of their parents.

纳税人发生的医药费用支出,可以选择由本人或者其配偶扣除;未成年人子女发生的医药费用支出,可以选择由其父母一方扣除

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