On the afternoon of the 31st, the decision to amend the personal income tax law, which attracted much public attention, was passed by vote at the Fifth meeting of the 13th National people's Congress standing Committee. So far, after seven major overhaul of the new tax law officially unveiled!
The starting point is set at 5000 yuan per month. The new tax law stipulates that the total income of individual residents shall be taxable income after deducting 60,000 yuan in expenses and deducting special deductions, special additional deductions and other deductions determined in accordance with law with the income of each tax year reduced by 60,000 yuan.
The tax cuts are skewed towards low-and middle-income. The new tax law stipulates that after this amendment, some tax grades of individual taxes will be further optimized and adjusted by expanding the range of lower tax rates of 3%, 10%, 20%, and narrowing the range of 25%, 30%, and 35% of the tax rate by 3%, 10%, 20%, 30%, and 35%, respectively. The higher tax rate range of 45% three grades remains the same.
A number of expenses are deductible. In addition to deducting basic deductions and special deductions such as "three insurances, one housing" and other special deductions, additional items of special deductions have also been added to the calculation of a tax in the future. The new tax law stipulates: special additional deductions, including children's education, continuing education, serious illness medical care, interest on housing loans or housing rent, maintenance of the elderly and other expenses, shall be determined by the State Council within the specific scope, standards and implementation procedures. And reported to the standing Committee of the National people's Congress for the record.
The new tax law came into effect on January 1, 2019 and the latest starting point and tax rate from October 1, 2018. The new tax law stipulates that from October 1, 2018 to December 31, 2018, taxpayers' salary and salary income shall be taxable income first on the basis of the monthly income less expenses of 5,000 yuan and the balance of special deductions and other deductions determined in accordance with the law. According to the personal income tax rate table (comprehensive income applicable) calculated after monthly conversion, and no additional deduction fee.