Elderly care expenses to become tax-deductible

China will include expenses of caring for elderly people in the categories of tax-deductible items while setting the minimum threshold for individual income tax at 5,000 yuan ($732) per month, according to the National People's Congress Standing Committee, the nation's top legislature, on Monday.

Experts said the move will further reduce taxpayers' burden and improve income distribution.

In a draft amendment submitted for first reading in June, the minimum threshold for individual income tax was to be raised from 3,500 yuan to 5,000 yuan per month, or 60,000 yuan per year, and the NPC Standing Committee decided to keep that standard on Monday.

Expenses for elderly care were added to the category of special expense deductions in the latest version of the amendment, considering "China's rising elderly population and heavier burden for taking care of aging residents", according to Xu Hui, deputy head of the NPC Constitution and Law Committee.

Other tax-deductible items include children's education, continuing education, treatment for serious diseases and housing loan interest and rent, according to the draft.

Source: China daily