Tax Deductions Increase
The State Council has issued a Notice on raising the standard for special additional deductions for Individual Income Tax (IIT) in order to further reduce the tax burden on families. The adjusted deduction has been backdated to take effect from 1 January 2023.
Included is care for infants and young children under the age of 3: the deduction has been raised from 1000 RMB to 2000 RMB for each infant and toddler per month
Children’s education special additional deduction: the deduction has been raised from 1000 RMB to 2000 RMB for each child per month.
Special additional deduction standard for supporting the elderly: the deduction has been raised from 2000 RMB to 3000 RMB per month.