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China to revise individual income tax

(Xinhua) Updated: 2016-03-07 13:18

BEIJING - China has completed a reform plan on individual income tax and it will be submitted to the national legislature for review this year, Chinese Finance Minister Lou Jiwei said Monday.

The Ministry of Finance, the State Administration of Taxation and other relevant departments jointly worked out the reform plan last year, said Lou at a press conference.

The plan has been presented to the State Council, the cabinet, he said. The amendment to the current individual income tax law will be submitted to the national legislature this year.

The amendment is not just about thresholds, but considers overall income and spending, such as housing mortgage, expenditure on education, children' schooling and elders' care, said Lou on the sidelines of the annual parliamentary session.

Th implementation of the law is complicated and will be promoted step by step, said Lou.

The personal income and property information system should also be improved and relevant laws need to be amended for the individual income tax reform, he added.

In 2011, China's top legislature adopted an amendment to the individual income tax law, raising the monthly tax exemption threshold from 2,000 yuan ($307) to 3,500 yuan ($538).

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