Author(s)

Ye Shi

Corresponding Author

Ye Shi

ABSTRACT

On December 21st, 2018, China’s State Administration of Taxation issued the Operational Measures for Additional Special Deductions for Individual Income Tax (IIT) (For Trial Implementation), which added six special tax deductions for the expenses for children’s education, expenses for continuing education, medical expenses for serious diseases, mortgage interest, house rent and elderly care expenses. For the first time, The IIT attached several livelihood expenditures to tax deductions. The paper cites the special deduction of children’s education in current Chinese IIT law, and finds several limitations of the tax policy among the applicable conditions, the deductible standards and the true declaration. Moreover, by referencing and comparing with the IIT law and children’s educational tax deductions from a few developed countries, the paper proposes relevant recommendations to improve Children's Educational deductibles.

KEYWORDS

Individual Income tax, children’s education, additional special income tax deductions