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China exempts childcare subsidies from individual income tax

Xinhua | Updated: 2025-08-20 19:51
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BEIJING - China will exempt childcare subsidies from individual income tax effective from Jan 1, 2025, according to a notice released by the Ministry of Finance and the State Taxation Administration on Wednesday.

To ensure the implementation of tax exemption, health authorities will work with finance and tax departments to establish an information-sharing mechanism. County-level health authorities will handle applications for tax exemptions by eligible individuals in accordance with regulations.

China has introduced a nationwide childcare subsidy program starting in 2025, as part of broader efforts to support families and encourage childbirth. The program offers families 3,600 yuan ($504) per year for each child under the age of three.

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