Global Daily Tax News, China Waives Tax On New Child Subsidies, (Aug 25, 2025)

China's Ministry of Finance and the State Administration of Taxation have confirmed that new subsidies to support childbearing will be exempt from tax.

Announced in July this year, China is offering a total subsidy of CNY10,800 over the first three years of a child's life, in a bid to reverse the declining birth rate.

The joint announcement, released on August 18, 2025, confirms that the childcare subsidies will be exempt from personal income tax, with effect from January 1, 2025.

The announcement directs the health and wellness departments to establish an information sharing mechanism with the finance and taxation departments. It mandates the health and wellness departments to handle income tax exemption declarations for subsidy applicants.