China proposes tax shake up

28 Aug 18

China is proposing a shake up of income tax law as part of revisions to its civil code.

China is proposing a shake up of income tax law as part of .

According to reports, Chinese legislators have begun discussing the draft civil code, which covers a wide range of civil law including property, marriage and family rights and inheritance.

Among the changes being considered are a higher personal income tax thresholds up from 3,500 yuan per month to 5,000 yuan, Xinhuanet reported.

A new deduction for those with elderly care responsibilities is also being considered.

It would be added to deductions that already exist for continuing education, medical treatment for a serious condition and housing costs.

Changes to taxes governing new building on farmland and the purchase of vehicles are also being considered by the National People’s Congress Standing Committee.

Additionally, the committee is looking at ditching China’s controversial laws on family size.

Reports have suggested all references to family planning have been removed from the code.

The one-child policy endured from 1979 until 2016 in a bid to curb the size of China’s population.

This was recently relaxed into a two-child policy as legislators responded to the problem of the country’s ageing population.

Reports have suggested legislators may seek to relax the policy further or remove restrictions on family size altogether.

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