The policy of additional deductions for individual taxes will soon come to fruition. On January 1, 2019, the whole people will receive this generous big red envelope.
The executive meeting of the State Council held on September 6 made it clear that the scope and standard of special additional deductions shall be implemented on January 1, next year, after consulting the public for opinions. At the beginning of last month, the Interim Measures for Special Additional Deduction of Individual Income Tax (Draft Measures for Soliciting Opinions) began to solicit opinions from all sectors of society. Therefore, financial and tax experts generally expect that the Measures will be published before the end of the year.
There are still more than 10 days left in 2018. In order to ensure that additional deductions for individual tax items are legitimate, the Measures should be promulgated before the end of December.
In the past two years, it can be called the year of tax reduction and fee reduction. All kinds of market participants have enjoyed relevant tax and fee dividends, while individual tax reform has enabled people to enjoy tax reduction dividends. In October, people have enjoyed the benefits of raising the starting point to 5,000 yuan, and the public will also enjoy the red envelope of additional deductions for individual taxes. Two subtractions, the compound interest of individual tax reform Highlights - the special additional deduction of individual tax includes six special additional deductions of childrens education, continuing education, interest on housing loans, housing rent, supporting the elderly, and major medical expenses. According to the Measures, the standard deduction amount for supporting the elderly is 24,000 yuan per year (2000 yuan per month), the special additional deduction standard for childrens education and first-suite loan interest is 12,000 yuan per year (1,000 yuan per month), and the standard for continuing education is 4,800 yuan per year or 3,600 yuan per year according to different categories. The special additional deduction of housing rent has three different deduction criteria according to the city category, which are 14400 yuan, 12000 yuan and 9600 yuan per year respectively. Medical expenditure for serious illness is deducted before tax according to actual expenditure, but it must be within the maximum limit of 60,000 yuan.
If the above special additional deductions are implemented in place, people will feel the burden reduction in all aspects of real life. After all, the deduction items are the most concerned focus problem of peoples livelihood in recent years. Tax reduction through special additional deduction is a concern for peoples livelihood, and also a pertinent solution to practical problems. More importantly, the implementation of the tax threshold and special additional deductions reflects the policys multi-dimensional observation of society, market and peoples livelihood, as well as the finding of a comprehensive and balanced interest fit in the dynamic adjustment.
Whether it is a social problem or a market problem or a livelihood issue, all kinds of topics need to be correctly solved. They can neither be given by patting their heads, nor drowned by all kinds of turbulent public opinion. They can only provide an appropriate solution under the situation of listening to the opinions of all parties or even the game of interests.
Even now, there are still some opinions and suggestions on special additional deductions. For example, people want to deduct more from the deduction of serious illness. After all, the existing medical insurance can not solve many problems such as difficult to see a doctor, expensive to see a doctor and expensive to see a doctor. In addition, housing, education, pension and so on may continue the troubles of generations, the public is also very concerned about this deduction, hoping to be able to refine these aspects of the special additional deduction, so that it is practical. In addition, for the deduction of first-suite loans, such as mortgage or mortgage, how to specify the concept of first-suite, and so on.
In short, the public has a real expectation of the individual tax special additional deduction. First, the above-mentioned special additional deduction should be as generous as possible, so that everyone can enjoy the special additional deduction dividend, after all, the special additional deduction project is a common social problem. Second, special additional deductions should be simple and convenient, and the public should not be discouraged by the cumbersome procedures at the implementation level. Third, the core of ensuring social equity is the deduction of special annexes. Therefore, good policy design needs good process design to cooperate, to ensure that rights are not discounted and to prevent the abuse of these policies.
Raising the starting point of individual tax levy, so that people can enjoy the effect of tax reduction; the additional deduction of individual tax makes people see the central governments policy concern for many real life problems. Peoples livelihood demands higher incomes and less burdens, so as to have more sense of attainment and happiness. Therefore, the additional deduction of red envelope for individual taxes is meaningful only if it becomes a real livelihood dividend.
Source: Ji Xueying_NN6784, responsible editor of Beiqing Net-Beijing Youth Daily