China authorities recently announced the launch of a new private pension program in 36 pioneering cities and areas, including Beijing, Shanghai, Guangzhou and Shenzhen.
The new program is a supplement to the public pension system supported by government policies, voluntarily attended by individuals and operated by market. Employees at Chinese companies covered by the State-level pension system can deposit up to CNY 12,000 per year into their individual pension accounts, and payments can be made monthly, yearly or by other structured installment plans.
Tax authorities has offered tax incentives to encourage more people to participate in the program
Please see the details for the tax benefits regarding individual pension participants. It could be tax exempted in monthly tax reporting or year-end tax filing (annual reconciliation) per employees’ choice.
Also, there is similar practice with existing special additional deduction-Children Education, Housing Rental, etc. From now on, employees who already participate the new pension plan are able to log in official IIT app issued by State Administration of Taxation to submit relevant information to enjoy this tax benefit. Attached guild for individual pension deduction submission for reference.Get full report here.
Please find the official website for your reference.http://www.chinatax.gov.cn/chinatax/n363/c5182621/content.htmlhttp://www.mohrss.gov.cn/SYrlzyhshbzb/dongtaixinwen/buneiyaowen/rsxw/202211/t20221121_490446.htmlhttp://www.mohrss.gov.cn/xxgk2020/fdzdgknr/shbx_4216/ylbx/202211/t20221125_490711.html
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