Representatives of the 2022 Two Sessions suggested encouraging childbirth through tax means: What are the specific preferential policies? Attach details

Although my country has fully relaxed the three-child policy, the birth rate is not very high and has not increased the enthusiasm of the younger generation. Therefore, at the 2022 National People's Congress, some NPC representatives suggested encouraging childbirth through tax means. So what are the specific preferential policies? The details are as follows:

1. 2022 Two Sessions Representatives Suggest Encouraging Childbirth Through Taxation

On the occasion of the 2022 National People's Congress and the Chinese People's Political Consultative Conference, Zheng Jianjiang, a member of the National People's Congress and chairman of AUX Group, said that in order to make more families willing and dare to have children, a very important measure is to encourage childbirth through tax means and effectively reduce the economic pressure on families. Here are some of the preferential policies he proposed:

1. First, increase the special individual income tax deduction standard for families with multiple children

Increase the special additional deduction standard for personal income tax for children's education expenses for families with two or three children, that is, the deduction rate is 3,000 yuan/person/month for the second child and 5,000 yuan/person/month for the third child.

2. The second is to increase the monthly personal income tax for families with multiple children

At present, according to the national personal income tax policy, the relevant expenses of a family's children receiving full-time academic education can be deducted at a standard rate of 1,000 yuan per child per month. However, this standard is extremely inappropriate for families with multiple children and should be deducted according to the standard for families with multiple children.

2. What items are included in the special deductions for personal income tax?

1. Children’s education

The related expenses of the taxpayer's children receiving full-time academic education can be deducted at a standard rate of RMB 1,000 per child per month.

2. Continuing Education

The expenses incurred by taxpayers for continuing education for academic qualifications (degrees) in China are deductible at a fixed rate of RMB 400 per month during the period of education. The deduction period for continuing education for the same academic qualification (degree) cannot exceed 48 months. The expenses incurred by taxpayers for continuing education for professional qualifications of skilled workers and professional and technical personnel can be deducted at a fixed rate of RMB 3,600 in the year in which the relevant certificates are obtained.

3. Serious illness medical treatment

In a tax year, the medical expenses incurred by the taxpayer related to basic medical insurance, after deducting the personal burden after medical insurance reimbursement (referring to the self-paid portion within the scope of the medical insurance catalogue), the part that exceeds 15,000 yuan in total can be deducted according to actual expenses within the limit of 80,000 yuan when the taxpayer handles the annual reconciliation and settlement.

4. Housing loan interest

If the taxpayer or his/her spouse uses a personal housing loan from a commercial bank or housing provident fund to purchase a house in China, either alone or jointly, the interest expenses on the first housing loan incurred shall be deducted at a standard rate of RMB 1,000 per month in the year in which the loan interest is actually incurred, and the deduction period shall not exceed 240 months. Taxpayers can only enjoy the interest deduction for their first home loan once.

In general, representatives of the 2022 Two Sessions suggested encouraging childbirth through tax means, mainly starting from raising the special personal income tax deduction standards for families with many children.