What you should know about personal income tax deductions


Tax-paying expats working in China can claim some of the same special additional personal income tax deductions as Chinese citizens. The following are some frequently asked questions about such tax benefits.



Infant care

Q: How much can be deducted if I have a child under the age of three?

A: The deduction standard if you have children under the age of three is 24,000 yuan ($3,300) per child, per year, or 2,000 yuan per month. 


Q: If my child was born abroad, can I still claim the deduction?

A: Yes. Whether the infant is born in China or abroad, parents can claim the deduction.




Children's education

Q: What is the deduction standard for children's education?

A: The standard deduction is 24,000 yuan per child per year, or 2,000 yuan per month.


Q: Can I claim the deduction for children's education if my children attend private schools?

A: Yes. Whether your children receive education in public or private schools, you can claim the deduction.


Q: I am not the biological parent of the child, but I am responsible for raising and educating him/her. Can I claim deductions?

A: Yes. If you are the legal guardian of the child and take on the responsibility to support and educate them, you can claim deductions for their education expenses.


Q: My child graduated from undergraduate studies and is preparing for the postgraduate admissions test. Can I deduct the education expenses?

A: No. Since your child has not yet enrolled in a full-time postgraduate program, they do not meet the conditions of child education expenses.





Continuing education 

Q: What is the scope of deductions for continuing education?

A: Taxpayers in China can deduct expenses for pursuing continuing education in the country at an amount of 400 yuan per month within a period not exceeding 48 months. 


Q: Can expenses for extracurricular classes that do not issue an official certificate be deducted?

A: No. The special additional deductions for continuing education are limited to expenses for academic continuing education, vocational qualification continuing education for skilled personnel, and professional and technical personnel. Expenses for extracurricular classes such as floral arrangement are not eligible for deductions.




Supporting the elderly 

Q: What is the scope of deductions for supporting elderly relatives?

A: You can deduct the expenses from taxable income for supporting parents over the age of 60 and grandparents or great-grandparents over the age of 60 whose children have passed away. 


Q: What is the deduction standard for supporting elderly parents?

A: Taxpayers who are the only child are entitled to a deduction of 3,000 yuan per month. Taxpayers who are not the only child must share the amount with their siblings, with the shared amount not exceeding 1,500 yuan per month per taxpayer.




Serious illness medical expenses 

Q: What is the deduction for serious illness medical treatment?

A: Within a tax year, you can deduct the portion of out-of-pocket medical expenses under the basic medical insurance scheme that exceeds 15,000 yuan, within a maximum of 80,000 yuan.


Q: Can I claim the deduction for serious illness medical expenses when seeking treatment at a private hospital?

A: Yes. As long as the private hospitals are included in the medical insurance settlement system, your expenses are eligible for the deduction for serious illness medical expenses.



Housing loan interest

Q: What is the scope of deductions for housing loan interest?

A: If you or your spouse separately or jointly buy your first property in China using loans from commercial banks or housing provident funds, you can claim a deduction for housing loan interest incurred in such cases. 


Q: What is the standard of housing loan interest deduction ?

A: You can claim a deduction of 1,000 yuan per month, with a maximum period of 240 months. 


Source: State Taxation Administration 

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