Global

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  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 12/27/2013

China - Individual tax relief measures to promote pension plans 

December 27:  The Chinese pension insurance system was established in the early 1990s, and provides savings insurance for basic pensions, supplementary pensions, and individual (personal) pensions.

Various agencies of China’s government—the Ministry of Finance, the Ministry of Human Resources and Social Security, and the State Administration of Taxation—jointly issued a circular to provide guidance concerning the collection and administration of individual income tax on enterprise annuities and occupational pensions.


The recent circular generally promotes the establishment of approved pension plans and broadens the national retirement savings base by:


  • Deferring the point of taxation for voluntary employer contributions to retirement age
  • Allowing a tax deduction for voluntary employee contributions to approved retirement plans



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