Recently, a new set of guidelines for the comprehensive income tax filing process has been circulated for public feedback in ChinaThis initiative aims to standardize and formalize measures that have proven effective in managing personal income tax filings in recent years, which has generally garnered positive reactions from taxpayersBy focusing on these regulations, the government seeks to streamline the income tax filing and refund process, ensuring that it operates regularly, consistently, and within a legal frameworkThe implications of this filing process are significant as they directly affect each individual taxpayer's financial interests and require the collaboration of various governmental departments for its successful implementationThis cooperation is crucial for maximizing the benefits of the income tax system, which aims to enhance support for low-income individuals and promote social equity.

The reform of the personal income tax system in China began in 2019, integrating both comprehensive and classified taxation methods

Under this framework, at the end of each tax year, individuals must consolidate their earnings from wages, labor compensation, manuscript fees, and royalties, collectively known as comprehensive incomeThis requires them to submit tax returns to the authorities, settling any amounts owed or due for refundThe initial phase of implementing this comprehensive income tax structure was not without hurdles, facing challenges such as large volumes, new operating procedures, and a complex system involving many contributors to the tax baseHowever, with support and active participation from various sectors of society, the filing processes from 2019 to 2023 have proceeded smoothly.

The filing process has led to three significant transformationsFirstly, tax management and services have become much more advanced and intelligentBy utilizing modern information technology, the procedures have been simplified, allowing for features like pre-filled information and automatic calculations

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Taxpayers can now complete their filings through the Personal Income Tax APP, which saves time and reduces manual input errorsSecondly, the cooperative governance level has improved considerably, with multiple departments working collaboratively towards shared taxation goalsThis has facilitated the sharing of tax-related information and services across different government agenciesThirdly, there has been a marked increase in taxpayer compliance due to heightened awareness of tax responsibilities and benefits, as taxpayers have become more engaged and knowledgeable about tax laws and relevant policies through their direct involvement in the filing process.

In 2018, the Chinese government made significant amendments to the personal income tax lawThe basic deduction threshold was raised from 3,500 yuan to 5,000 yuan per month per individualAdditionally, six specific deductions were introduced, focused on areas such as children's education, elder care, housing loan interest, rent payments, continuing education, and major medical expenses

Fast forward to 2022, a new tax deduction for childcare was added for children under three, and in 2023, these deductions for childcare, education, and elder care were further increasedThese tax reforms aim to deliver tangible benefits to citizens, which are expected to be realized through the proper execution of the income tax filing process.

The newly announced guidelines incorporate features like pre-filled declaration forms for taxpayers, appointments for initial filing procedures, and expedited refund processes for eligible taxpayers facing heavier financial burdensThis means that the income tax filing experience will become more user-friendly and efficientTo ensure that the benefits of these policies and services are effectively implemented, various government departments need to work closely together, break down existing barriers, and continuously enhance the quality and efficiency of the tax filing process

This will significantly minimize the time taxpayers spend on filing and improve their overall experience.