The State Council issued a document to establish a special additional tax deduction for the care of infants and young children under the age of 3-
The new personal tax policy helps reduce the burden of family parenting
Our reporter Zeng Jinhua
On March 28, the State Council issued a notice specifying the establishment of a special additional deduction for personal income tax for the care of infants and young children under the age of 3.
The policy stipulates that from January 1, 2022, taxpayers' expenses related to caring for infants and children under the age of 3 will be deducted at a fixed rate of 1,000 yuan per infant and child per month before calculating and paying individual income tax.
"The special additional deduction policy for the personal income tax for the care of infants and young children under the age of 3, as a supporting measure to optimize the fertility policy, reflects the state's encouragement and care for the people's fertility and parenting, and is conducive to reducing the burden of parents in raising children." The relevant person in charge of the Income Tax Department of the General Administration said.
Zhu Qing, a professor at the School of Finance of Renmin University of China, believes that raising children is a necessary expense for families and should be deducted before paying individual income tax. This is also a practice adopted by many countries, which reflects the fairness and rationality of the tax system.
"Increasing the special additional deduction for the care of infants and young children under the age of 3 is an inclusive tax reduction policy that can benefit thousands of households. Because the expenses are deducted before tax, it effectively reduces the cost of raising children for the people, which is conducive to improving the people A sense of happiness and gain,” said Li Xuhong, director of the Institute of Fiscal and Taxation Policy and Application of Beijing National Accounting Institute.
"The special additional deduction policy for the care of infants and young children under the age of 3 is effectively linked with the current six special additional deduction policies, and basically covers all stages of the taxpayer's entire life cycle." said Liu Yi, a professor at Peking University School of Economics.
In terms of specific deduction methods, one spouse can choose to deduct 100% of the deduction standard, or both spouses can choose to deduct 50% of the deduction standard separately.
Guardians who are not parents can also be deducted according to the above policy.
"This policy allows both spouses to share deductions equally, but also allows one of the couples to fully deduct, which fully reflects the consideration of family factors in my country's individual tax system and the policy goal orientation of comprehensively reducing the tax burden of low- and middle-income individuals." Li Xuhong said.
The reporter learned from the State Administration of Taxation that in order to allow taxpayers to enjoy tax reduction dividends as soon as possible, the taxation department has made various preparations in an all-round way.
From March 29, eligible taxpayers can fill in the special additional deduction for the care of infants and young children under the age of 3 through the mobile personal income tax APP. If it is inconvenient to fill in the report on their own, they can also submit the relevant information to the employer to fill in the report on their behalf.
"According to the relevant provisions of the Individual Tax Law, the special additional deduction for the care of infants under the age of 3 can be enjoyed when the unit pays wages every month, or can be enjoyed together in the settlement of the following year." Liu Yi said that in the first few months of this year The deductions that are not enjoyed can be supplemented by a one-time deduction when the salary is paid in subsequent months.
For example, if the taxpayer provides infant and child information to the employer in April, the employer can declare a special additional deduction of 4,000 yuan from January to April for the taxpayer when the wage for April is paid.
It is reported that the special additional deduction for the care of infants and young children under the age of 3 is the same as the other 6 special additional deductions, and the service management model of "enjoyment after declaration and data retention for future reference" is implemented.
When making a declaration, taxpayers can fill in the declaration through the mobile personal income tax APP or provide the unit with information such as the name, certificate type and number of infants and children, and do not need to submit certification materials to the tax authority.
At the same time, taxpayers need to keep the child's birth medical certificate and other materials for future reference.