The tax preferential policies for personal pensions have expanded coverage

In December 2024, the Ministry of Finance and the State Administration of Taxation jointly issued the Announcement on the Implementation of Personal Pension Individual Income Tax Preferential Policies Nationwide (No. 21 of 2024), expanding the coverage of personal pension individual income tax preferential policies to the whole country. Taxpayers can deduct personal pensions when handling the 2024 annual settlement or submit them to their employers to deduct when withholding and paying individual income tax on December 2024 salary and wages.

Tax settlement appointment service

To better guide taxpayers and enhance their experience, the tax authorities continue to offer appointment services for the early settlement period (March 1 - 20). Taxpayers needing to handle the 2024 settlement during this period can book an appointment via the individual income tax APP after February 21st , 2025, for any day within this period. From March 21st  to June 30th , no appointment is required, and taxpayers may proceed at their convenience.

Priority tax refund service

The tax authorities offer a more convenient priority refund service to taxpayers who qualify for settlement refunds and have heavier living burdens. These taxpayers include those with elderly dependents and young children, heavy medical burdens, significant income declines, and those earning less than CNY 60,000 annually who have already prepaid individual income tax.

Pre-filling service for settlement declaration form items

Based on the commercial health insurance data shared by the Financial Regulatory with the tax authorities, we provide taxpayers with pre-filling services for information such as the commercial health insurance tax preference identification code to further enhance the tax declaration experience.

One-stop personal pension declaration and deduction service

The tax and human resources and social security departments, working together, have introduced a one-stop personal pension declaration feature in the Individual Income Tax APP. Taxpayers can directly access their personal pension contribution details from the management platform, eliminating the need to download and enter payment vouchers. This allows for a more convenient declaration and enjoyment of the personal pension tax deduction.

At PHC Advisory, we can offer you full support on matters regarding doing business in China, or any other issues your business may face. If you would like to know more about policies relevant to your business in Italy or Asia, please contact us at info@phcadvisory.com.  

PHC Advisory is a company of  DP Group: an international professional services conglomerate of companies with approximately 100 experienced professionals worldwide. We offer comprehensive services in tax, accounting, and financial consulting, including financial supervision, financial audit, internal audit, internal control over financial reporting, and support for audited financial statements and annual audits, ensuring clients' financial transparency and compliance. 

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The content of this article is provided for informational purposes only, financial advice must be tailored to the specific circumstances on a case-by-case basis, and the contents of this article do not legally bind PHC Advisory with the reader in any way. 

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