What’s Changing?
China’s State Taxation Administration updated the Individual Income Tax Withholding System (Golden Tax III) on January 23, 2026, introducing significant changes to the calculation and reporting of individual income tax. Although the Administration has not released official upgrade notes or a new user manual for these changes, the system’s calculation rules have been optimized, which impact cumulative deductions in the payroll process.
Key Changes to Standard Deductions
The most significant update involves how cumulative standard deductions are calculated for comprehensive income.
For income items including regular wages and salaries, insurance agent commission income, securities broker commission income, and other continuous labor remuneration income (regardless of employment or
