More taxpayers are getting additional tax reduction dividends from the payroll, as the new temporary measures for special individual income tax deductions came into effect along with the amended personal individual income tax law Jan. 1, the Shenzhen Economic Daily reported yesterday.
On Wednesday, the city’s first payroll with special deductions under the new tax law was issued at Shenzhen Nitto Optics Co. Ltd. The payroll showed the company’s personal individual income tax burden had decreased by 9.3 percent this month due to the new measures.
The overall tax burden of the company has decreased by 46.72 percent thanks to other preferential policies such as the increase of the individual income tax threshold and the adjustment of the tax rate structure.
“It has helped ease our tax burden since a new standard for individual income tax was implemented last October. This month, we began to enjoy special tax deductions. All of our company’s employees are very happy for these changes,” said the accountant surnamed Lan of Shenzhen Fuyun Logistics Co. Ltd.
Twelve employees at the company paid personal income tax last month and all of them enjoyed the special tax deductions this month. Four of them no longer have to pay personal income tax after the deductions.
“Take me as an example, I don’t have to pay personal income tax as I enjoy two special tax deductions, which include children’s education and elderly care,” said Lan.
Lan added that the company she is working for is a small company and the employees’ salaries are not high. Now they can pay less individual tax thanks to the new tax measures. The company’s employees mainly enjoy special tax deductions for children’s education, elderly care and rent.
The special individual income tax deductions aim to lower the tax burden for those who have certain expenditures, which cover six areas namely children’s education, continuing education, health treatment for serious diseases, housing loan interest, rent and elderly care.