A new tax deduction policy which aims to reduce personal income tax is expected to be released by the end of this year, with the new policy scheduled to take effect January 1, 2019, The Paper reported.
According to the draft, based on the 5,000-yuan personal allowance for income tax, people can also enjoy six special deductions for children’s education, continuing education, major medical care, housing loan interest or housing rent, and elderly care.
They will also receive a deduction of 12,000 yuan per year if they are paying a loan on their first housing, and, they may only take advantage of the deduction for one time.
However, relevant departments have not offered clarification about “the first home.” It could mean the first home taxpayer owned, or the first home they borrowed to buy.