On June 19, the "Improvement of the Individual Income Tax Law of the People's Republic of China (Draft)" was submitted to the Third Session of the Standing Committee of the 13th National People's Congress for consideration. This is the seventh amendment since the introduction of the Tax Law in 1980. In this draft amendment, in addition to the attention tax rate, the tax threshold is raised from 3,500 yuan per month to 5,000 yuan per month (60,000 yuan per year), wages, salaries, labor remuneration, remuneration and royalties. Labor income is the first to implement rules such as syndrome tax. There is also a noteworthy rule that will increase the additional deductions for children's education expenses, continuing education expenditures, major medical expenses, housing loan interest and housing rents for the first time. The industry believes that if the draft is successfully reviewed, it will promote the formalization of the entire education and training industry. At the same time, because the Chinese people have always attached great importance to the education expenditure of their children, even if the policy is implemented, it will not bring too much opportunity for K12 training. However, for adult language training, academic education and vocational education, once the continuing education expenditure is tax deductible, those who are on the verge of registration will flood the market. However, how to declare and how to determine the tax credit for education expenditures must wait for the introduction of specific rules. Background: Tax Fair + Second Child Policy Promotion Policy Launched This tax reform has already begun to take shape. As we all know, a single tax system has the drawback of not being fair to taxpayers. In October 2003, the Third Plenary Session of the 16th CPC Central Committee defined the reform goal of individual income tax: the implementation of a personal income tax system combining comprehensive and classified. This includes the addition of special deductions to reduce the burden on taxpayers. It is understood that the Ministry of Finance has tried some tax reforms in certain special areas. In this year's two sessions, Premier Li Keqiang also mentioned in the government work report that the personal income tax threshold should be raised, and the deduction of special expenses such as child education and major medical treatment should be increased. Shi Yaobin, then deputy minister of the Ministry of Finance, also pointed out that in the media question, this special tax deduction has not been added before the tax reform. The preferred focus is on children's education and major medical care. The scale and quantity of special deductions will be determined according to the actual situation. On the other hand, the introduction of the second child policy can also be said to be one of the reasons for this tax reform. In the two sessions this year, the Agricultural and Industrial Party proposed that the tax should be based on the family as the taxpayer, and build a hybrid model based on comprehensive levy and supplemented by classification. In particular, it is necessary to reduce the cost of raising and raising the enthusiasm for fertility by accelerating the tax reform, and the second child can be tax refunded. In addition, the addition of special supplementary deductions for children's education and continuing education is also in line with the trend of international tax reform. Zhu Weiqun, a professor at the School of Public Economics and Management at Shanghai University of Finance and Economics, said that it is an international trend to include children's education and vocational education in special tax credits. Analysis: Policy application focuses on high school, university and early childhood education For parents and education companies, the special expenditures for children's education expenditures and continuing education expenditures will be specifically applied to which expenditures, and how to deduct them will be the focus of attention. Although the policy details have not yet been announced, we may be able to conduct an analysis based on the cases being implemented internationally. The mustard heap has learned that the US education tax benefits mainly include three aspects: First, the pre-tax deduction of education expenses, that is, the relevant education expenditure can be exempted from personal income tax; Second, the education tax rebate, that is, when the family has education expenditure, it can be refunded according to a certain amount. Personal income tax paid; Third, education savings accounts, families can set up education special accounts, although the special funds are not tax-free, special funds are used for education expenditure, but the investment income of special accounts is exempt from income tax. Among them, the first two categories are the major education tax incentives in the United States. Because the United States implements K12 compulsory education, the main burden of the family comes from higher education. According to the US tax policy, taxpayers' children, their own or their spouses can apply for tax refunds after they have incurred higher education or vocational education expenses. It is estimated that in 2017, more than 13 million families in the United States enjoy education tax rebates, with an average tax refund of $1511 per household and a total tax refund of $20.1 billion. Similar to the situation in the United States, the cost of the nine-year compulsory education phase of Chinese families is basically solved by the state finance. Therefore, the education expenditure of Chinese children is concentrated in high school, university and kindergarten. In addition to public school fees, many families in China still have to pay tutoring fees, extracurricular training fees for various quality education, and vocational education after employment. It is worth discussing whether this part of the expenditure can be included in the special additional deduction. For example, in the United States, there are corresponding tax rebate policies for families with more children, child custody fees, etc. Among them, the tax rebate and subsidy policy for children is an important part of the Trump tax reform. Yang Zhiyong, a researcher at the Institute of Finance and Economics of the Chinese Academy of Social Sciences, said in an interview with the media that it is expected that the relevant departments will also introduce specific standards for special additional deductions. For example, what kind of educational institution's fees can be deducted, and what the deduction ratio of each item is, must be specified. In this regard, Shi Zhengwen, director of the Center for Finance and Tax Research at the China University of Political Science and Law, believes that the initial cost of each deduction can not be particularly high. Market: Deduction policy will promote the formalization of educational institutions It is worth noting that compared with the international practice of reporting taxes on households, the domestic tax system that is withheld by employers is still being implemented. This puts higher demands on families, tax authorities, education companies and employers. For special additional deductions such as child education expenditures and continuing education expenditures, a more complicated reporting and certification process is required. The relevant person in charge of the tax department of a district-level tax bureau said in an interview with the media that since the expenses of the individual in the education of the children are not fully grasped by the employer, it is necessary to take the initiative to submit the invoice and other proofs. If you declare, you will report to the unit yourself, in order to enjoy the additional deduction. On the other hand, expenditures on children's education expenses are difficult for government departments to grasp, and these aspects will become the focus areas of tax audits. This requires the tax authorities to establish and improve regulatory mechanisms, while also requiring education companies to be more compliant. Among them, the details of the policy will become one of the important policies that affect the development of the education and training industry after the promotion of the law and the training of off-campus training institutions. It is understood that the US tax incentives for education also have clear provisions on the scope of educational institutions that can enjoy preferential treatment, that is, students who have obtained educational institutions recognized by the government departments according to law can enjoy tax benefits. For parents, since the tuition fees of public high schools are not high, the actual pressure on education expenditures comes mostly from off-campus training. Then, if the off-campus training expenditure cannot be deducted, then for most parents, the education cost deduction is better than nothing. If the rules allow for the deduction of off-campus training fees, then it will inevitably impose stricter requirements on educational institutions, and compliance has become an inevitable result of educational companies. The founder of an offline training institution in Beijing said that the deduction policy is a pressure for the education industry that collects tuition fees in the form of cash, but it will also be an opportunity, which may promote the formalization of the industry. However, when consulting the offline training institutions in the third- and fourth-tier cities, they said that they did not pay too much attention to the policy. In addition to the K12 field, industry insiders believe that the education expenditure deduction policy will certainly promote the development of vocational education. For the just-concluded adult language training track and the IT training track in the Red Sea, the deduction policy will further reduce the cost of learning and provide an entry point for more learners. In addition, both Yang Zhiyong and Shi Zhengwen believe that with the draft amendment to the Individual Income Tax Law for consideration by the Standing Committee of the National People's Congress, the new threshold rules may be implemented in 2019. But no matter what, compliance is bound to be a problem that needs to be solved in the development of the education industry. Remote Control Bed,Multipurpose Hospital Bed,Three Function Hospital Bed,Super Strong Medical Bed Jiangmen Jia Mei Medical Products Co.,Ltd. , https://www.jmmedicalsupplier.com