On 6 December 2013, the Ministry of Finance, the State Administration of Taxation and the Ministry of Human Resources and Social Security jointly issued the Notice on Certain Issues in Relation to IIT [individual income tax] Treatment of Enterprise Annuities and Occupational Annuities, Cai Shui [2013] No. 103, effective as of 1 January 2014, to provide IIT deferral treatment for enterprise annuities and occupational annuities.
Under prior rules, employer contributions to annuities were subject to IIT as the employee’s salary income, and employee contributions were not deductible for IIT purposes.
Business Law Digest is compiled with the assistance of Baker & McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker & McKenzie by e-mailing Zhang Danian (Shanghai) at: danian.zhang@bakermckenzie.com
