In October 2018, China introduced a revised individual income tax (IIT) rate table to provide more relief for middle- and low-income earners. The new system aimed to reduce the tax burden on workers while maintaining fiscal balance. 💸 The updated IIT brackets included an increase in the basic deduction from ¥3,500 to ¥5,000 per month, which meant fewer people were subject to higher tax rates. 😊

The progressive tax rates ranged from 3% for the lowest bracket to 45% for the highest. 📈 For instance, taxable income between ¥3,000 and ¥12,000 was taxed at 10%, with a quick calculation method applied. This adjustment helped align the tax system with economic growth and living costs. 🏠

Moreover, additional deductions such as education and housing loan interest were introduced, further lightening the financial load on taxpayers. 💡 These changes marked a significant step towards a fairer taxation policy in China.