China reduces income tax for parents of children under 3

A family takes photos against a backdrop of blooming sunflowers at the Olympic Forest Park in Beijing, on July 4, 2021. (PHOTO / XINHUA)

BEIJING – China has announced tax-relief policies for parents rearing children under 3 years old, according to a State Council circular issued on Monday.

Starting Jan 1, 2022, the individual taxable income of such parents can be reduced by a total of 1,000 yuan ($157) per month for each baby, said the circular.

The deduction can be applied in full by one parent or can be split evenly, added the circular.

ALSO READ: Lower living costs to boost birth rate

The policy is the implementation of a decision on improving birth policies to promote long-term and balanced population development, which was adopted by the Communist Party of China Central Committee and the State Council in July.