Good news for China's personal income tax! Starting point increased from 3,500 yuan to 5,000 yuan per month
China tax experts are delighted to see the individual income tax law amendment submitted to 13th Session of the Third Session of the NPC Standing Committee for review on June 19. This is the seventh time for individual income tax law to amend since 1980, which will also be under a fundamental change.Some of the highlights of this modification are:
2. The tax threshold will be increased from 3,500 yuan to 5,000 yuan per month (60,000 yuan per year).
3. For the first time, it is to add the special additional deductions including children's education expenses, continue education expenses, major medical expenses, housing loan interest, housing rent and others alike;
4. It will optimize and adjust the tax rate structure to widen the gap between lower tax rates;
5. Add the anti-avoidance clauses for the first time. In view of the individual who doesn’t transfer property according to arm's length principle, evades tax in tax heaven, implements unreasonable business arrangement to gain inappropriate tax benefits, the tax authorities will be given the power of adjusting tax paying in a resonable way.
There is no doubt that the amendment will pass the deliberation of the Standing Committee of the National People's Congress.China's tax accountants and experts will pay close attention to China's tax reform.
Source: Shanghai Nuo Di Law Firm