Study on tax reporting mechanism

Source: Xinhua | 2017-02-22

SHANGHAI will conduct a study on setting up a new reporting system for individual income tax and cut costs for companies in its reform of fiscal and tax policies, government officials said yesterday.

The city’s tax authority aims for a comprehensive tax reporting mechanism this year to propel a change in the individual income tax system, said Guo Jianfei, chief of the Shanghai State Tax Bureau and the Shanghai Local Tax Bureau.

Shanghai’s proposal seeks to back China’s long-term mission of creating a comprehensive individual income tax system to allow for bigger pre-tax deductions.

Interest on mortgages for a first home and education fees were expected to be included in the new pre-tax deductions, experts have said.

Shanghai will also be proactive in lowering the tax burden for middle-income workers, said Song Yijia, head of the city’s finance bureau.

The city will also continue to cut tax and administrative fees for companies to promote innovation and industrial reforms, authorities said.