October 31 2018
The Ministry of Finance and the State Administration of Taxation recently released the Interim Measures for Special Additional Deductions from Individual Income Tax (Exposure Draft) to collect public opinions.
Taxpayers who have expenditures related to six items - children's education, continuing education, treatment of serious diseases, housing loan interest and apartment rents as well as support to seniors - will enjoy additional deductions to their taxable incomes. According to the draft plan, expenditures on children's education could be deducted at a fixed standard of 12,000 yuan a year, or 1,000 yuan per month. If taxpayers are supporting parents aged 60 or above, they could get tax deductions alone or along with other siblings. Taxpayers can also be entitled to tax deductions on interest expenses for their mortgage loans or rent expenditures.
Special Additional Deduction as followings
| |
Maximum (CNY / year) |
| Expenditures for education of children |
12,000 / family |
| Continuing education |
4,800 / person (diploma education)
3,600 / person (vocational qualification) |
| Medical treatment of serious diseases |
60,000 / person |
| Housing loan interest |
12,000 / family |
| Housing rents |
9,600 – 12,200 / family |
| Raise of parents |
24,000 / family |
Note: Expats can choose the method of special additional deduction, or they can continue to enjoy previous IIT exemption policy for kids education, rents and flights twice a year etc.October 31 2018
The Ministry of Finance, the State Administration of Taxation, Ministry of Commerce and General Administration of Customs recently issued the Circular on Tax Policies for Retail Exports in Comprehensive Cross-border E-Commerce Pilot Zones, providing an exemption to qualified exporters in pilot zones from value-added tax and consumption tax.
The conditions include: (1) e-commerce exporters are incorporated in pilot zones and register export date, product name, unit of measurement, amount, unit price and sum of money with local online platform of comprehensive cross-border e-commerce services; (2) exports are subject to e-commerce export declaration procedures by local customs authorities; (3) exports are not among goods that do not enjoy export rebates according to the Ministry of Finance and the State Administration of Taxation under the instruction of the State Council.
The circular has been implemented starting from October 1, 2018.
October 31 2018
The Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission and the Ministry of Commerce recently issued the Circular about Expanding the Scope of Application on the Policy of Not Collecting Withholding Income Tax on Direct Investments with Distributed Profits by Overseas Investors.
According to the circular, the favorable tax policy will be expanded to all non-restricted foreign investment projects and sectors from encouraged foreign investment projects.
Moreover, if overseas investors have not enjoyed any policy benefits, they can apply to receive tax benefits within three years and get tax breaks from tax payments they have already made.
The policy has been implemented since January 1, 2018.
October 31 2018
The Ministry of Finance and the State Administration of Taxation recently issued the Circular about Adjusting Export Tax Rebate Rates for Some Products.
According to the circular, exporters of bean pulps will not get tax rebates starting from November 1, 2018. Export tax rebate rates for certain products, such as photographic film, lubricant and some agricultural products, will be increased. Besides, export tax rebate rates for other products will be raised by one percentage point to 16%, 10% and 6%, respectively.
