About personal tax: analysis of hot issues of additional deduction for special projects to support the elderly
Author | Zhiheng (Haikou) Law Firm, Lawyer Deng Chuanlong
From yesterday, taxpayers can make an appointment for any day from March 1 to March 20, 2024 to handle personal tax settlement and payment business through the personal tax APP. The author of this article has published "About Personal Tax: Interpretation of the 2023 Comprehensive Income Settlement and Payment Document" the day before yesterday, explaining the policy caliber and professional terms through easy-to-understand language, but there are still many readers who consult the author about personal tax deduction projects. In order to assist taxpayers in handling the settlement and payment business, this article sorts out the hot issues related to supporting the elderly in the additional deduction of special projects and analyzes them one by one.
Question 1: What is the main body of the additional deduction for the special project of supporting the elderly?
Article 1067 of the Civil Code of the People's Republic of China stipulates: Parents whose adult children fail to fulfill their maintenance obligations, lack the ability to work or have difficulties in life, have the right to require their adult children to pay alimony. Article 1072 stipulates: The rights and obligations between stepfathers or stepmothers and stepchildren who are supported and educated by them shall be governed by the provisions of this Law on the relationship between parents and children.
Article 1074 stipulates that grandchildren and grandchildren who can afford it shall have the obligation to support their grandparents who have passed away or whose children are unable to support them.
It can be seen that the main body of the additional deduction for the special project of supporting the elderly can be:
1. All children who are obligated to support them (including children born in wedlock, children born out of wedlock, adopted children, and stepchildren).
2. When the child has passed away or the child is unable to support the elderly, grandchildren and grandchildren who are obligated to support them.
Question 2: Can parents-in-law or parents-in-law enjoy additional deductions for special projects for supporting the elderly?
The author of this article found by checking the provisions of the current tax policy in our country: the elderly (dependents) in the special project additional deduction policy for supporting the elderly refer to parents who have reached the age of 60, as well as grandparents and maternal grandparents who have reached the age of 60 whose children have passed away or are unable to support them, excluding the parents of the spouse. Therefore, taxpayers who support their parents-in-law or parents-in-law cannot enjoy the additional deduction for supporting the elderly special project.
Question 3: Since the taxpayer's uncle has no children, and the taxpayer actually bears the obligation to support the uncle, can the expenditure for supporting the elderly be deducted?
Up to now, the dependents stipulated in our country's policy only refer to the taxpayer's biological parents, stepparents, adoptive parents or other legal dependents. The author of this article believes that if the taxpayer's uncles and uncles over the age of 60 belong to the above-mentioned scope of dependents, they can enjoy the deduction policy for supporting the elderly. If it does not belong to the above scope, it cannot be deducted.
Question 4: If both parents are over 60 years old, can they be deducted at twice the standard?
According to the content of the announcement of the State Administration of Taxation No. 2 in 2024, as long as one of the dependents reaches the age of 60, he can enjoy the special project additional deduction of personal income tax according to the standard, not according to the number of people. Therefore, regardless of whether one or more of the dependents are over 60 years old, the taxpayer can enjoy the special project additional deduction standard of personal income tax is the same, that is, according to the standard of 3,000 yuan per month, it has nothing to do with the number of elderly dependents.
The specific criteria for additional deductions for special projects supporting the elderly are:
If the taxpayer is an only child, a standard monthly deduction of 3,000 yuan will be made.
2. If the taxpayer is a non-only child, he or she shall share the monthly deduction amount of 3,000 yuan with his or her brothers and sisters, and the amount of each person's contribution shall not exceed 1,500 yuan per month. In addition, when the taxpayer is a non-only child, he or she may share it equally among the dependents, or may be designated by the dependant, or may be agreed upon by the dependant.
The author of this article reminds: (1) Whether it is an agreed apportionment or a designated apportionment, a written apportionment agreement must be signed, and the taxpayer is obliged to keep the agreement for reference, and the retention period is five years after the end of the statutory settlement and payment period. (2) The designated apportionment of the dependant takes precedence over the agreed apportionment between the dependents. (3) The specific apportionment method and amount cannot be changed within a tax year.
Question 5: If one of the two children does not have the ability to support his parents, can the other child enjoy the additional deduction standard of 3,000 yuan for the special project of supporting the elderly?
As mentioned above, if the taxpayer is a non-only child, the monthly deduction amount of 3,000 yuan will be shared among the siblings, and the amount of each person's contribution cannot exceed 1,500 yuan per month. Therefore, the author of this article believes that when the dependent has a child who is unable to support the parents, one of them cannot enjoy the full deduction alone.
Question 6: If the brothers and sisters who are not the only child have passed away, can they be deducted according to the standard of 3,000 yuan/month for the only child to support the elderly?
The author of this article confirms based on the replies from local tax authorities that in one tax year, the taxpayer's other siblings have passed away, and they can be deducted 3,000 yuan/month according to the standard of one-child support for the elderly in the second year.
For example, if a taxpayer's siblings have passed away before January 1, 2023, they will choose to enjoy the elderly support deduction standard according to the status of "only child"; if the taxpayer has filled in the status of "non-only child", the declared information can be modified, and the less enjoyed part deducted according to the status of non-only child in January can be deducted when the salary is received next month.
Question 7: For families with only one child and parents who remarry after divorce, how can they enjoy the additional deduction policy for special projects for supporting the elderly?
Combined with practice, it can be seen that for a one-child family, the parents reestablish a family after divorce. In the two newly established families, if the taxpayer is the only legal caregiver to one or both of the biological parents, the taxpayer can enjoy a special project of 3,000 yuan per month in accordance with the one-child standard. Additional deduction for the elderly. The author of this article reminds: When the taxpayer fills in the special project additional deduction information form, he needs to indicate the relationship with the dependant.
Question 8: If the taxpayer has two employment units, can he deduct the expenses for supporting the elderly from the two units separately?
According to the "Announcement of the State Administration of Taxation on Revising and Issuing the" Operation Measures for Additional Deductions for Individual Income Tax special projects (for Trial Implementation) " (Announcement of the State Administration of Taxation [2022] No. 7)," If a taxpayer obtains income from wages and salaries from two or more places at the same time, and the withholding agent handles the above-mentioned additional deductions for special projects, the taxpayer can only choose to deduct from one of the additional deductions for the same special project within a tax year.
"It can be seen that if the taxpayer has more than two units that pay wages at the same time, the special project for supporting the elderly can only be deducted from one of the units within a tax year.
The author of this article believes that if the taxpayer applies for additional deductions for special projects for supporting the elderly to one unit, it is possible to apply for other projects (such as children's education, serious illness medical treatment, etc.) to another unit.
Lawyer Profile
Lawyer Deng Chuanlong
Zhiheng (Haikou) Law Firm Equity Senior Partner
Member of the Disciplinary Special Committee of Hainan Lawyers Association
Member of Foreign-related and Overseas Chinese Professional Committee of Hainan Lawyers Association
Outstanding talents of foreign lawyers in Hainan Province
Mediator of Haikou International Commercial Mediation Center
Member of the Legal Service Group of the 3rd China International Consumer Goods Expo
Professional direction:
Compliance and anti-corruption, corporate governance
Litigation, arbitration, taxation
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