The special deduction standard for individual tax comes with a monthly income of 10,000 yuan or no tax!

　　Beijing, Oct. 20 (Reporter Li Jinlei) On Oct. 20, the Interim Measures for Special Additional Deduction of Personal Income Tax was publicly solicited for comments from the whole society. The standards for the six special additional deductions for children’s education, continuing education, serious illness medical care, housing loan interest or housing rent, and supporting the elderly have been clarified. These expenses will be deducted before tax, which will save you a lot of money!

　　Let’s see how much money can be deducted from each standard first.

　　— — Children’s education: 12,000 yuan is deducted annually.

　　The expenses related to the taxpayer’s children’s pre-school education and academic education shall be deducted according to the standard of 12,000 yuan per child per year (1000 yuan per month). Among them, preschool education is from the age of 3 to the primary school; Academic education covers primary school to doctoral students.

　　— — Continuing education: 3,600 yuan or 4,800 yuan will be deducted annually.

　　Taxpayers’ expenses for continuing education with academic qualifications shall be deducted according to the quota of 4,800 yuan per year (monthly 400 yuan) during the period of academic education; Taxpayers’ expenses for continuing education of professional qualifications of skilled personnel and professional and technical personnel shall be deducted according to the annual quota of 3,600 yuan in the year when relevant certificates are obtained.

　　— — Serious illness medical treatment: the annual limit for the part exceeding 15,000 yuan is 60,000 yuan.

　　In a tax year, the part of the medical expenses recorded by the taxpayer in the social medical insurance management information system that the individual bears more than 15,000 yuan is the medical expenses for serious illness, which can be deducted according to the standard limit of 60,000 yuan per year.

　　— — Interest on the first home loan: deducted according to the standard of 12,000 yuan per year.

　　Taxpayers or their spouses use personal housing loans from commercial banks or housing accumulation funds to purchase housing for themselves or their spouses. During the loan repayment period, the interest expenses of the first housing loan can be deducted according to the standard of 12,000 yuan per year. With the agreement of both husband and wife, you can choose to deduct it from one of them.

　　— — Housing rent: the maximum monthly fixed deduction is 1200 yuan.

　　The taxpayer and his spouse have no housing in the taxpayer’s main working city, but the rental expenses incurred in renting housing in the main working city can be deducted according to the following standards:

　　The rented house is located in municipalities directly under the central government, provincial capital cities, cities with separate plans and other cities determined by the State Council, and the deduction standard is 14,400 yuan per year (1,200 yuan per month); In addition to the above-mentioned cities, the deduction standard is 12,000 yuan per year (1000 yuan per month) for other cities with a registered population of more than 1 million, and 9,600 yuan per year (800 yuan per month) for other cities with a registered population of less than 1 million.

　　— — Support for the elderly: deducted according to the standard quota of 2,000 yuan per month.

　　The taxpayer’s support expenses for parents over 60 years old (inclusive) and other legal dependents can be deducted according to the following standards:

　　If the taxpayer is an only child, it will be deducted according to the standard quota of 24,000 yuan per year (2,000 yuan per month); If the taxpayer is a non-only child, it shall share the deduction amount of 24,000 yuan per year with its brothers and sisters.

　　According to the provisions of the interim measures, the special additional deduction standard is not static, and will be adjusted in a timely manner with the changes in people’s livelihood expenditures such as education, housing and medical care.

　　Then, according to the above standards, how much money can ordinary people save?

　　Let’s look at the calculation formula first

　　Taxable income = monthly income -5000 yuan (threshold)-special deduction (three insurances and one gold, etc.)-special additional deduction-other deductions determined according to law.

　　For example, a married person, Xiao Li, works in Beijing with a monthly income of 10,000 yuan, a special deduction of 2,000 yuan for "three insurances and one gold" and a monthly rent of 4,000 yuan. She has a child who goes to kindergarten and her parents are over 60 years old.

　　When the threshold is 3,500 yuan, there is no special additional deduction, and a monthly tax of 345 yuan is required;

　　When the threshold is 5,000 yuan, there is no special additional deduction, and it is required to pay (10,000-5,000-2000) × 3% = 90 yuan individual tax every month.

　　According to the new policy, Xiao Li can enjoy the deduction of 1200 yuan for housing rent, 1000 yuan for children’s education, and 1000 yuan for supporting the elderly (sharing the deduction with her sister), so the individual tax = (10000-5000-2000-1200-1000-1000) × 3% = 0 yuan.

　　In other words, after enjoying the special additional deduction, the monthly salary is 10,000 yuan, and the monthly tax payment may be 0!

　　How to handle it?

　　According to the "Regulations on the Implementation of the Individual Income Tax Law of the People’s Republic of China (Revised Draft for Comment)", the handling method of special additional deduction is clarified. Taxpayers who obtain wages and salaries can provide information when withholding agents withhold and pay in advance; Taxpayers who obtain income from remuneration for labor services, remuneration for manuscripts and royalties shall do so at the time of final settlement.

　　Don’t try to cheat! Because the tax authorities can conduct spot checks on the special additional deduction information provided by taxpayers according to a certain proportion.

　　If the information submitted by the taxpayer is found to be untrue before the end of the settlement period, the tax authorities shall order the taxpayer to correct it and notify the withholding agent; If the above problems are found again before the end of the settlement period in that year, the taxpayer shall be punished according to law, and incorporated into the relevant credit information system according to the situation, and joint punishment shall be implemented in accordance with the relevant provisions of the state.

　　When will it be implemented?

　　The Interim Measures for Special Additional Deduction of Individual Income Tax will be implemented on January 1, 2019 according to law after being publicly solicited for opinions. (End)