Dec.2025 - Reminder: Resident individuals can now confirm the special deductions for 2026

In accordance with the relevant regulations of Individual Income Tax ("IIT"), where an employee requires the employer to continue handling special additional IIT deductions for the following year, the employee shall verify and confirm the details of these deductions via the IIT APP in December each year.

Confirmation period for 2026 deductions

Please remind the eligible employees to verify and confirm their special additional deductions for 2026 via their IIT APP before 31 December 2025.

Key reminders

• A timely confirmation is required to continue the special additional deductions for the employees. Unconfirmed deductions may be paused from January onward and will be reinstated once the employees conduct the confirmation step via IIT APP.

Policy for non-Chinese mainland residents

• Those who qualify as resident individuals in China may elect to enjoy either the tax-exempt living allowance policy or the special additional deductions policy while they cannot claim both. The chosen option is fixed for the calendar year and cannot be changed within that period.
• Those who opt for the tax-exempt living allowance are not required to confirm the special additional deductions via IIT APP.

Key special additional deductions and standards

• We’ve summarized the key special additional deductions and their respective standards in attachment for your reference.