Conduct the annual tax reconciliation from March to June; be sure to include all eligible special deductions

The following groups of people typically receive a tax refund after completing this process: those who only worked for a few months throughout the year, those who changed jobs mid-year, or anyone who failed to claim deductions for child education, mortgage payments, rent, or elderly dependents. It takes only a few minutes to finish on a mobile device. If your total annual income falls below 120,000 yuan, or if the amount of tax you owe is under 400 yuan, you may skip this step.

No cost involved. The process can be completed in just a few minutes via the “Individual Income Tax” app.

This process consolidates calculations for four types of income: wages and salaries, labor remuneration, author’s fees, and royalties. Any overpaid tax is refunded to you, while any underpaid amounts must be paid up. There are two scenarios where you may forgo this process: when your total annual income is under 120,000 yuan, or when the tax you owe is less than 400 yuan. These thresholds were set by the State Taxation Administration in 2023 and remain in effect through December 31, 2027. Conversely, the groups mentioned above are precisely those who usually qualify for a tax refund after completing the reconciliation.

Even individuals who owe tax must complete this process; failure to do so is illegal. There are seven categories of special deductions available: child education, continuing education, major illness medical expenses, mortgage interest payments, rent payments, elderly dependents support, and childcare expenses for children under three. Note that you may claim either mortgage interest or rent deductions, but not both.

国家税务总局 (2025). 个人所得税综合所得汇算清缴管理办法（第六条）及其解读. https://www.gov.cn/zhengce/202502/content_7006465.htm；财政部、税务总局 (2023). 关于延续实施个人所得税综合所得汇算清缴有关政策的公告. https://www.gov.cn/zhengce/zhengceku/202308/content_6900594.htm