The newly revised Individual Income Tax Law mainly has the following changes:
The standard for the basic deduction of comprehensive income has been raised, and the standard for the basic deduction of comprehensive income has been raised to 5,000 yuan per month, and six special additional deductions have been added, including children's education, continuing education, serious illness medical treatment, housing loan interest, housing rent, and support for the elderly.
The tax rate structure has been optimized and adjusted, and the range of lower-level tax rates has been expanded, and the range of higher-level tax rates has been narrowed, so that the distribution of tax burdens has become more reasonable.
The individual income tax system combining comprehensive and classified income tax has been implemented, and the four items of labor income, namely, wages and salaries, remuneration for labor services, author's remuneration and royalties, are included in the scope of comprehensive income taxation, and the comprehensive income of individual residents is calculated and levied on a consolidated basis on an annual basis and the annual reconciliation of comprehensive income is implemented, while other income is still taxed in a classified manner.
The criteria for resident and non-resident taxpayers have been adjusted from whether they have resided in China for one year to whether they have resided in China for a total of 183 days in a tax year.
Anti-avoidance provisions have been added, giving tax authorities the power to make tax adjustments in a reasonable manner for tax avoidance behaviors such as individuals transferring property not in accordance with the arm's length principle, avoiding taxes in overseas tax havens, and implementing unreasonable business arrangements to obtain improper tax benefits.
These changes will help better protect the rights and interests of taxpayers, promote fair and reasonable taxation, and promote economic development and social progress.