Notice on Issues concerning Individual Income Tax on Enterprise Annuities or Occupational Annuities (“Notice”)has been issued
“Notice” has been issued on Dec. 6, 2013, which will come into force on Jan. 1, 2014. The highlights of this “Notice” on Individual Income Tax (“IIT”) on enterprise annuities or occupational annuities are as follows: Deferred IIT treatment. According to the previous regulations, contributions for enterprise annuities shall be combined with the regular salary and calculate the IIT payable accordingly. “Notice” states that Deferred IIT treatment shall be applied according to the following circumstances. For contributions made by companies,no IIT will arise at the time of contribution; For contributions made by employees, the amount no more than 4% of…