There are many options to reduce your income-tax burden by increasing deductions from the legal standpoint, and we are glad to help our clients and partners to share some tips:

1. For children’s education, an amount of RMB 1000/month can be deducted from the parents’ taxable income for each child’s education from preschool all the way to higher education.

2. Taxpayers who are receiving continuing education can enjoy the deduction of RMB 400/month during the period their courses last, as well as RMB 3600/year for professional qualifications education.

3. Taxpayers whose medical expenditures exceed RMB 15,000 within one tax year according to the record of Social Medical Insurance Management Information System, can have the exceeding part (up to RMB 60,000/year) of expenditures deducted.

4. Taxpayers or their spouses who have mortgage loans for a first home can have a deduction of RMB 1000/month.

5. Housing rent deduction of up to RMB 1200/month will be granted to taxpayers owning no housing in the city where they work.

6. An amount of RMB 2000/month can be deducted from taxpayers’ taxable income for their parent who is over 60 years old.

The new temporary measures have come into effect along with the amended Personal Income Tax Law on Jan. 1, 2019."