Tax Deduction for IIT-More Details
In our previous article about IIT, we mentioned there is six items of special additional deductions which could be deducted from the taxpayer’s income, that is: children's education, continuing education, medical treatment for serious diseases, housing loan interest, house rent, and support for the elderly.
Now let’s see more details:
1. children's education
RMB 1,000 per month for each kid could be deducted, if the kid is accepting pre-school education or full-time education for academic qualification. It means from the age of three till the kid finishes his/her higher education (including junior college, undergraduate, postgraduate and doctoral education), 1000 RMB could be deductedfrom the taxpayer’s income or 500 RMB from the husband and wife’s perspective income for each kid.
2. Continuing education
If a taxpayer is accepting continuing education himself/herself for academic qualification (degree) within China, RMB 400 shall be deducted per month.
3. MedicalTreatment for Serious Diseases
If the accumulated amount a taxpayer has to pay by himself in a year exceeds RMB15,000, the portion above RMB 15000 could be deducted, with a limit of no more than RMB 80000.
For example, suppose a taxpayer has spent RMB 300000 for his medical treatment, RMB 180000 of which could be reimbursed by medical insurance fund. He has to pay RMB 120000 himself. For the portion of RMB 105000, as more as RMB 80000 could be deducted.
4. Housing LoanInterest
RMB 1,000 could be deducted if a taxpayer is paying loan interest for purchasing his first residence, as long as the loan interest is actually incurred. However, the longestterm for the deduction could not exceed 20 years.
5. Rent
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6. Support for parents
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