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China adjusts additional deduction standards in personal income tax
Updated: Sep 1, 2023
english.www.gov.cn
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The State Council decided to raise some thresholds for additional deductions in personal income tax in order to alleviate the financial burden of childbearing, child-rearing, education and caring for the elderly, according to a circular released on Aug 31.
The threshold for special additional deductions in personal income tax for taking care of children under age 3 will be raised from 1,000 yuan to 2,000 yuan monthly, according to the circular.
Meanwhile, for children’s education, an amount of 2,000 yuan will be deducted on a monthly basis, and 3,000 yuan for taking care of the elderly will be deducted every month, both 1,000 yuan higher than previous standards.
The circular noted that the adjustments have been in effect since Jan 1, 2023.
