Complete China's annual income-tax reconciliation from March to June and claim eligible deductions
Refunds are common if you worked only part of the year, changed jobs or omitted deductions for children, mortgage interest, rent or elderly dependents. The process takes minutes. The cited exemption applies where annual comprehensive income does not exceed RMB 120,000 or additional tax due does not exceed RMB 400.
What it takes
Free. Usually ten or so minutes in China's Individual Income Tax app.
What you may gain
Reconciliation combines wages, service remuneration, manuscript fees and royalties, refunding overpayments and collecting shortfalls. A 2023 policy exempts qualifying taxpayers from reconciliation where annual comprehensive income is no more than RMB 120,000 or additional tax due no more than RMB 400; it runs through December 31, 2027. People with income for only a few months, job changes or omitted special additional deductions commonly receive refunds.
Context & considerations
People required to pay additional tax must file; failing to do so is unlawful. The seven special additional deductions cover children's education, continuing education, major medical expenses, housing-loan interest, rent, support for elderly relatives, and care for children under 3. Mortgage interest and rent deductions cannot both be claimed for the same qualifying choice.
Research & references
State Taxation Administration of China (2025). Measures for Administration of Annual Reconciliation of Comprehensive Individual Income, Article 6, and interpretation. https://www.gov.cn/zhengce/202502/content_7006465.htm ; Ministry of Finance and State Taxation Administration of China (2023). Notice continuing relevant annual comprehensive-income reconciliation policies. https://www.gov.cn/zhengce/zhengceku/202308/content_6900594.htm