Update on Special Additional Deductions for Individual Income Tax
At the end of August 2023, the State Council released a new policy for further increase three special additional deductions for individual income tax.
1) Care expenses for children under the age of three
Deduction amount is increased from RMB 1,000 per month per child to RMB 2,000 per month.
2) Children's education
Deduction amount is increased from RMB 1,000 per month per child to RMB 2,000 per month.
3) Support for elderly
Deduction amount is increased from RMB 2,000 per month to RMB 3,000 per month.
The above special additional deductions is valid from January 1st 2023.
Combining existing special additional deductions in valid, below is the summary:
|
Special Additional Deductions |
Amount |
|
Children's education |
RMB 2,000 per month per child |
|
Continuing education |
Academic: 400 per month up to 48 months; Technician qualification/professional technician: 3,600 in the year qualification is obtained; |
|
Medical treatment for major illness |
Where the medical expense cumulatively exceed RMB 15,000, the taxpayer shall deduct the excess truthfully within the RMB 80,000 limit. |
|
Housing loan interest |
RMB 1,000 per month (up to 240 months) |
|
Housing rent |
Three levels: RMB 800, RMB 1100 and RMB 1500, depending on the city; |
|
Support for elderly |
The only child: RMB 3,000 per month; Non only child: allocated between siblings, each one not exceed 1,500 per month; |
|
Care expenses for children under the age of three |
RMB 2,000 per month per child |
