The amended individual income tax law was passed on Aug 31 and will be effective on January 1, 2019.

During the transitional period, measures will be carried out to raise the deduction baseline from 3,500 yuan to 5,000 yuan per month.

The State Taxation Administration (STA) recently implemented a policy in accordance with the 5,000 yuan deduction standard ensuring that the individual income tax reform fully benefits the majority of taxpayers in a timely way.

The announcement pointed out that the taxpayer's actual income should be subject to the deduction baseline of 5,000 yuan per month as of October 1, 2018. For those taxpayers who meet the above situation, the withholding agents must strictly withhold the deduction standard.

The amended individual income tax law was passed on Aug 31 and will be effective on January 1, 2019.

During the transitional period, measures will be carried out to raise the deduction baseline from 3,500 yuan to 5,000 yuan per month.

The State Taxation Administration (STA) recently implemented a policy in accordance with the 5,000 yuan deduction standard ensuring that the individual income tax reform fully benefits the majority of taxpayers in a timely way.