What items are included in the special additional deductions?

The special additional deductions cover educational costs for children, continuing education expenses, health-care costs for major diseases, housing loan interest , rent, elderly support and care expenses for children under the age of 3.

Who can enjoy the deduction for educational costs for children? What and how much are the deductible costs?

Taxpayers who can enjoy the special additional deduction for educational costs for children are the children’s legal guardians, including biological parents, stepparents, adoptive parents and other legal guardians of the children.

Who can enjoy continuing education expenses deduction? What and how much are the deductible continuing-education expenses?

For taxpayers the expenses of continuing education (academic qualification/degree) in China are deductible at the standard quota of 400 yuan per month during the continuing education (academic qualification/degree) period.

Can taxpayers enjoy deduction for continuing education expenses if they have undertaken continuing education (degree) abroad, or if they have received a certificate of skill issued abroad?

No. Taxpayers can only enjoy deduction for continuing education expenses for academic qualifications or degrees received within China, as well as continuing education expenses of professional qualifications of skilled personnel or the professional qualifications of specialized technicians in accordance with the regulations.

Who can enjoy deduction for health-care costs for major diseases? What and how much are the deductible health-care costs for major diseases?

Within a tax year, for medical expenses incurred by a taxpayer that are relevant to the basic medical insurance, the part of such expenses that are individually borne and paid by the taxpayer after medical insurance reimbursement (those are to be individually borne under the medical insurance catalogue) cumulatively in excess of 15,000 yuan is deductible as they are actually incurred up to the standard limit of 80,000 yuan per year at the time of individual income tax reconciliation.

Who can enjoy the deduction for housing loan interest? What and how much is the deductible housing loan interest cost?

A taxpayer or his/her spouse or both who have purchased a home within China for the taxpayer or his/her spouse with an individual home loan taken alone or jointly by the taxpayer or his/her spouse from a commercial bank or from the Housing Provident Fund, the costs incurred from the payment of mortgage interest on any housing loan for first-time home buyers are deductible at the standard rate of 1,000 yuan per month in years when such mortgage interest is actually incurred, provided that the deduction period does not exceed the maximum of 240 months.

Who can enjoy rent deduction? What and how much are the deductible rent expenses?

Rent expenses incurred by taxpayers and their spouses who do not own a home in their main working city are deductible in accordance with the regulations of the special additional deduction for rent. The one(person) who has entered into a rental housing contract can enjoy the rent deduction. If the couple’s main working city is the same, only one of them can deduct the expenses. Taxpayers are not allowed to enjoy the deduction for housing loan interest and rent separately at the same time