The State Council has issued the Interim Measures for special additional deduction of individual income tax (hereinafter referred to as the "measures"), which shall come into effect on January 1, 2019. Do you know the special additional deduction method of individual income tax?
The measures pointed out that the special additional deduction of individual income tax refers to the six special additional deductions of children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, supporting the elderly and so on specified in the individual income tax law.
According to the newly revised individual tax law, the taxable income of individual tax will be calculated in the future. In addition to the deduction of expenses and special deductions such as "three insurances and one gold", 5000 yuan can also enjoy special additional deductions such as children's education, continuing education, serious illness medical treatment, housing loan interest or housing rent, as well as supporting the elderly. The tax law authorizes the State Council to formulate the specific scope, standards and implementation steps of special additional deductions, which shall be reported to the Standing Committee of the National People's Congress for the record.
According to the interim measures, the special additional deduction of individual income tax needs to follow the principles of simplicity, fairness and rationality, practical reduction of burden and improvement of people's livelihood.
Detailed rules for special additional deduction of individual income tax:
First set loan interest: deducted by 1000 yuan / month
According to the draft, the interest expense of the first set of housing loan incurred by the taxpayer or his / her spouse using the commercial bank or housing provident fund personal housing loan to purchase housing for him / her or his / her spouse can be deducted according to the standard quota of 12000 yuan per year during the loan repayment period. According to the agreement between the husband and the wife, one of them may choose to deduct it.
Housing rent: deducted by 800-1500 yuan / month
According to the draft, if the taxpayer and his / her spouse have no housing in the taxpayer's main working city, the rental expenses incurred in the main working city can be deducted according to the following standard quota:
The rental housing is located in municipalities directly under the central government, provincial capital cities, cities specifically designated in the state plan and other cities determined by the State Council, and the deduction standard is 18000 yuan per year (1500 yuan per month); In addition to the above-mentioned cities, for other cities with a registered population of more than 1 million, the deduction standard is 13200 yuan per year (1100 yuan per month). For other cities with a registered population of less than 1 million, the deduction standard is 9600 yuan per year (800 yuan per month)
The above deduction standards cover the national average rent expenditure level to a large extent and take into account the differences of rent levels in different regions. The housing rent deduction standard is slightly higher than the mortgage interest deduction standard on the whole, which reflects the care for our vast rental groups.
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Conclusion:
The new special additional deduction of individual income tax includes six aspects:
--Children's education. The expenses related to the taxpayer's children's receiving preschool education and academic education shall be deducted according to the standard quota of 12000 yuan (1000 yuan per month) per year for each child.
--Continuing education. The taxpayer's expenditure for continuing education with or without education background can be deducted at a fixed amount of 4800 yuan or 3600 yuan per year during the specified period.
--Serious illness medical treatment. If the medical expenses incurred by taxpayers in a tax year exceed 15000 yuan, they can be deducted within the limit of 60000 yuan per year.
--Interest on housing loans. The interest expense of the first housing loan incurred by the taxpayer or his / her spouse can be deducted according to the standard quota of 1000 yuan per month.
--Housing rent. The taxpayer and his / her spouse have no housing in the taxpayer's main working city, and the rental expenses incurred in the main working city can be deducted according to the fixed amount of 800 to 1200 yuan per month according to the different cities where the rented housing is located.
--Support the elderly. If a taxpayer supports parents over 60 years old (inclusive), it shall be deducted in accordance with a certain standard and quota. The tax payer's monthly deduction for the only child is 2000 yuan.