China is working on plans for personal income tax reform, as demand for enhancing the taxable threshold is growing, the country's finance minister said on Tuesday.
The country is considering to levy the personal income tax yearly and aggregately on some personal income items such as wages and remuneration for personal services, while imposing the tax separately on some personal income items such as transfer of property, Chinese Finance Minister Xiao Jie said at a press conference in Beijing.
Xiao revealed that another new policy is being made to properly increase the number of tax-exempt items for families in need including costs for having a second baby.
"The overall thinking of the personal income tax reform is to build a personal income tax system suitable for China's national conditions," Xiao said. "Our purpose is to further ease the burden of taxpayers," he noted.
The finance minister also said that they will assess whether to increase the taxable threshold of the personal income tax based on the residents' consumption levels.
In order to ensure the successful implementation of the new personal income tax policy, the Chinese government will improve its ability of collecting taxpayers' information and will accordingly amend the related tax laws, Xiao added.