Tax breaks will add spur to economic growth
The State Council, China’s Cabinet, unveiled a temporary regulation on deductions for the taxable income of individuals as part of measures to reduce the tax burden and boost consumption on Dec 22.
Residents with expenditures in six areas — children’s education, continuing education, health treatment for serious illness, housing loan interest, rent and elderly care — can claim a tax reduction on income, the regulation said.
Taxpayers who continue their education can also claim a tax deduction of 400 yuan ($58) a month for 48 months, at most, for a degree or 3,600 yuan in total for professional qualifications. Taxpayers with serious illnesses will have their amount of out-of-pocket medical costs (between 15,000 yuan and 80,000 yuan) deducted from their taxable income each year, the regulation said.
Taxpayers or their spouses who have mortgage loans for a first home can have a deduction of 1,000 yuan per month from taxable income. Housing rent deduction of up to 18,000 yuan each year will be granted to taxpayers who do not have their own homes in the city where they work, it said.
An amount of up to 2,000 yuan every month will be deducted from an only-child taxpayer’s taxable income for his or her parent who is over 60. Those who have siblings can share the 2,000-yuan deduction quota, according to the regulation.
China started implementing a new standard for individual income tax from October. The threshold for personal income tax exemption was raised from 3,500 yuan to 5,000 yuan per month or 60,000 yuan per year.
The new temporary measures will come into effect along with the amended personal individual income tax law on Jan 1.
Regulatory documents to be better screened
China will establish a mechanism to review the legal validity of government regulatory documents before their implementation, according to a guideline published by the General Office of the State Council on Dec 20.
The move is part of the country’s effort to preserve legislative convergence and accelerate building a government in line with the law and improve governance, the guideline said. It added that government departments nationwide should fully recognize the importance of promoting the review on regulatory documents and carry out the review work industriously. A special department will be set up or designated for the review. Departments are also required to include the review in their evaluation systems for advancing law-based governance, the guideline said.
The Ministry of Justice will take charge of organizing, coordinating, propelling and giving guidance, and governments in each region can report their implementation of the circular and related issues to the ministry, it said.
Measures will help people to enjoy holiday
Authorities have called for efforts to ensure the public can enjoy a happy and peaceful holiday for the New Year and the upcoming Spring Festival, according to a notice unveiled on Dec 23. Authorities at all levels must ensure the implementation of poverty alleviation policies and make sure that pensions are issued in full and on time, the guideline said.
More efforts must be made to extend helping the elderly people and the disabled, especially those faced with difficult circumstances, and ensure the safety of left-behind children in rural areas, it said.
The notice also stressed the importance of ensuring market supply, especially in gas, coal and electricity, and the safety of food and drug products.
Authorities will also take measures to ensure safe public travel during the Spring Festival, with more actions set to be taken to meet the demand for tickets among migrant workers and college students, the guideline said.
Work safety will be another priority for authorities, as the guideline called for the prevention of various accidents as well as infectious diseases. The guideline also cautioned against government officials violating the frugality rules and vowed enhanced disciplinary measures during the festive period.