What are the pre-tax deductions for personal income tax:
1. The standard deduction for personal tax expenses is 3,500 yuan per month.
2, social insurance premiums
3, in accordance with the content of Article 25 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China*** and the State of China, the basic old-age pension insurance premiums, basic medical insurance premiums, and unemployment insurance premiums paid by individuals shall be deducted from the taxable income of the taxpayer.
3. Housing Provident Fund
According to Article 25 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China, the housing provident fund paid by an individual shall be deducted from the taxable income of the taxpayer.
According to the "Ministry of Finance, the State Administration of Taxation on the basic pension insurance premiums basic medical insurance premiums unemployment insurance premiums housing fund notice on individual income tax policy" (Cai Shui [2006] No. 10), the housing fund allows the deduction of the maximum percentage of the contribution of 12%, more than the portion is not allowed to pre-tax deduction.
4, annuity
According to the "Ministry of Finance, Ministry of Human Resources and Social Security, State Administration of Taxation on the Notice on Relevant Issues of Individual Income Tax on Enterprise Pension and Occupational Pension" (Cai Shui [2013] No. 103), enterprises and institutions (hereinafter collectively referred to as the unit), in accordance with the methods and standards stipulated by the state's relevant policies, pay contributions to enterprise annuities or occupational pensions for all the employees who work in the unit or are employed in the unit, and the amount of contributions to enterprise annuities or occupational pensions will be deducted before tax. The portion of unit contributions to enterprise annuities or occupational annuities (hereinafter collectively referred to as annuities) paid by enterprises and institutions (hereinafter collectively referred to as institutions) for all employees serving or employed by the institutions shall not be subject to individual income tax for the time being when they are credited to individual accounts; the portion of individual contributions to annuities paid by individuals in accordance with the provisions of the relevant national policies shall be deducted from the individual's taxable income of the current period to the extent that such portion does not exceed the 4% of the taxable base of the individual's contributory salary.
3, commercial health insurance
According to the "Ministry of Finance, State Administration of Taxation, CIRC on the extension of the pilot policy of commercial health insurance individual income tax to the national implementation of the notice" (Cai Shui [2017] No. 39) document, the individual purchase of commercial health insurance products in line with the provisions of the expenditure is allowed to be in the current year (month) to calculate the taxable income to be deducted before tax, the deduction limit of 2400 yuan, the deduction limit of 2400 yuan. The deduction limit is 2,400 yuan/year (200 yuan/month). Expenditures on the purchase of commercial health insurance products in line with the regulations by the unit for its employees shall be counted separately in the employees' individual salaries and wages, treated as if they were purchased by individuals, and deducted in accordance with the above limit.
4, public welfare donations
According to the "Chinese People's **** and the State Individual Income Tax Law" and "Chinese People's **** and the State Individual Income Tax Law Enforcement Regulations" of the content of the provisions of the individual through the Chinese territory of the social organizations, state organs to the education and other public welfare undertakings, as well as suffered serious natural disasters in the region, the poverty-stricken areas of the donations. The portion of the donation that does not exceed 30% of the taxable income declared by the taxpayer may be deducted from his or her taxable income.
Expanded Information:
On October 1, 2018, the starting point for personal tax was adjusted to 5,000 yuan per month. The new tax law stipulates that the comprehensive income of a resident individual shall be taxable as the balance of the income for each tax year, less expenses of 60,000 yuan, as well as special deductions, special additional deductions, and other deductions determined in accordance with the law.
The tax cuts are tilted toward lower and middle incomes. The new tax law provides that after this amendment, some of the tax brackets for personal tax are further optimized and adjusted, expanding the brackets for the three lower tax rates of 3%, 10%, and 20%, narrowing the brackets for the 25% tax rate, and leaving the brackets for the three higher tax rates of 30%, 35%, and 45% unchanged.
Multiple expenses are tax deductible. In the future, the calculation of personal tax, in the deduction of basic deductions and "three insurance and one gold" and other special deductions, but also increased the special additional deductions. The new tax law provides: special additional deductions, including children's education, continuing education, medical treatment for serious illnesses, housing loan interest or housing rent, support for the elderly and other expenditures, the specific scope, standards and implementation steps determined by the State Council, and reported to the Standing Committee of the National People's Congress for the record.
References:
Pre-tax Deduction_Baidu Encyclopedia