Over 66m taxpayers saved more from higher income tax deductions

China increased its subsidies for compulsory education, basic old-age insurance, and basic medical insurance and expanded the coverage of assistance and support, with over 66 million taxpayers benefited from an increase in the special additional deductions for individual income tax, according to the government work report delivered by Premier Li Qiang at the opening meeting of the second session of the 14th National People's Congress (NPC) in March 5, 2024.

Last year, additional tax and fee relief measures valued over 2.2 trillion yuan were taken to ensure stable performance of the industrial sector and to support advanced manufacturing, as they aimed to deduce more tax for enterprises in expenses of research and development in key industries. Also, these measures helped promote high-quality development of key industrial supply chains. As a result, industrial enterprise profits sees a turning from declining to growing.

China's tax authorities will implement structural tax and fee reduction policies to support technological innovation and advance of the manufacturing industry this year. More efforts will be taken to increase fiscal, tax and financial support for the high-quality development of the industries. The support of fiscal, tax, financial and other policies will be strengthened to stabilize employment, and more specific policies are expected to promote more jobs.

A number of NPC deputies from the business community believed that the tax and fee reduction policies has encouraged their enterprises to achieve more bright results.

Source: State Taxation Administration of P.R.C.