China To Raise Income Tax Standard Deduction Level
As part of reforms to the country's individual income tax system, China is planning to
raise the permitted level of pre-tax income deduction, according to a report in the Chinese
state media.
Xinhua reported that under the government’s plan, the current standard
deduction of 800 yuan (less than US$100), which has been unchanged since the
introduction of China’s Individual Income Tax Law in 1981, could be increased
to 1,200 yuan (US$145). An increase in the standard deduction to similar levels has already taken place
in some of China’s larger cities, such as Beijing, Shanghai and Shenzhen,
to reflect the growing affluence of their residents. The planned move has led some experts to urge that the standard deduction for
foreign residents in China, which is currently 4,000 yuan, should be brought
more into line with the level faced by Chinese citizens.
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