Core Viewpoint - The personal income tax reform during the "14th Five-Year Plan" period has significantly improved the tax system, promoting fair distribution, enhancing public welfare, and increasing tax compliance awareness among citizens [2][5]. Group 1: Taxpayer Benefits - As of 2025, the number of individuals benefiting from special additional deductions has reached 119 million, representing a 755% increase compared to the initial settlement in 2020 [3]. - The total tax reduction amount has approached 300 billion, reflecting a 156.5% increase, with high-income earners paying more taxes while low- and middle-income earners either pay less or no tax [5]. - Individuals with an annual income below 120,000 are generally exempt from paying personal income tax after settlement, largely due to the extensive deduction system [5]. Group 2: Deduction System - The basic deduction standard of 60,000 per year accounts for approximately 62.7% of China's per capita GDP in 2024, which is significantly higher than the typical 40% in developed countries [6]. - The deduction system includes various items such as "three insurances and one fund," child education, and elderly care, which cover most living expenses [5][6]. - The number of individuals benefiting from special additional deductions is primarily concentrated among the 30-55 age group, who are often responsible for both elder care and child-rearing [6]. Group 3: Tax Compliance and Legal Framework - The new tax system requires taxpayers to handle annual settlements independently, which enhances public awareness of tax laws [8]. - The tax authorities have optimized the personal income tax app to provide intelligent pre-filling services for over a billion taxpayers, making the filing process simpler [8]. - There have been over 60 cases of tax evasion exposed, particularly among online influencers and entertainment industry workers, reinforcing the importance of lawful tax payment [8].