companies and individuals pay according to the ratio of 1: 1, and the deposit unit can independently determine the deposit ratio within the range of 5%-12%. The CPF Management Center will calculate the CPF deposit base according to the local employees' wages (generally, the maximum is not more than 3 times of the average monthly salary of employees in the previous year, and the minimum is not lower than the minimum standard of local employees' wages in that year). On the basis of this base, the unit can decide that the unit and individual can deposit 5% to 12% of their respective deposit base every month. That is to say, you can deposit 1% to 24% of the provident fund deposit base every month.

The functions of the provident fund are as follows:

1. Use the housing provident fund to buy a house

Buying a house with the housing provident fund can not only be directly withdrawn, but also be used to pay the down payment for the house purchase, and can also be used to pay the subsequent mortgage loan, and the full amount can be withdrawn at one time after retirement and resignation. In addition, the loan interest rate of housing provident fund loans to buy a house is lower than that of commercial loans, which saves a lot of money for buyers.

2. Use housing provident fund to rent a house

Housing provident fund can also be used to rent a house, which can be extracted to pay rent and reduce the pressure of life. Moreover, there are no restrictions on the types of renting houses, which can be used to pay for both market rental and affordable housing allocated or rented by the government.

3. Use the housing provident fund to decorate

When decorating houses, the housing provident fund can not only be withdrawn, but also be used to decorate houses with provident fund loans.

4. Use the housing provident fund to build renovated houses

If there are old houses at home that need renovation and reconstruction, you can also use the provident fund for cash withdrawal or loan.

5. Use housing provident fund to pay for major diseases

Housing provident fund can be used to pay for major diseases and reduce the family burden for patients.

6. Withdrawal of housing provident fund loans for families with low-income difficulties is as follows:

1. Housing provident fund cannot be directly used to pay the down payment. Many people think that housing provident fund can pay the down payment, but this is not the case. Generally speaking, housing provident fund is used first and then withdrawn. Simply put, if you want to use housing provident fund loans to buy a house, you must first pay the first payment, and then bring your ID card or ID card of both husband and wife, household registration book and other materials to the local area.

2. The withdrawal amount of the provident fund cannot exceed the total amount of the house payment, and some people pay a relatively large amount of housing provident fund. Some people may have 5, yuan in their accounts, but the total amount of the house purchase is 3, yuan. All of them want to withdraw the balance of the provident fund, and they can still have 2, yuan after paying the house payment, but this is not the case. Even if there is 5, yuan in the housing provident fund account, the total amount of the house purchase cannot be fully withdrawn.

3. After the provident fund settles the loan, you can use the provident fund to buy a house. If you have applied for a provident fund loan, it will be recorded in the provident fund system. If the loan has not been paid off, or the spouse can't apply for a provident fund loan again, but the previous loan has been settled, you can apply for a provident fund loan to buy a house again, and it is not limited by the second suite policy.

families who are included in the minimum living allowance or difficult assistance can also withdraw housing provident fund for family expenses.

Under the following circumstances, employees can withdraw the provident fund:

1. Those who purchase, build, renovate or overhaul their own houses;

2. Retired;

3. completely losing the ability to work and terminating the labor relationship with the unit;

4. Those who leave the country to settle down;

5. Repaying the principal and interest of the house purchase loan;

6. The rent exceeds the prescribed proportion of family wage income.

To sum up, individual income tax is exempted, and the housing provident fund paid by units and individuals according to the proportion stipulated by the state is exempted from individual income tax, that is, the amount deposited in the individual account of housing provident fund and the income from the interest of housing provident fund are exempted from individual income tax

Legal basis:

Regulations on the Administration of Housing Provident Fund

Article 24

Employees may withdraw the storage balance in their housing provident fund accounts in any of the following circumstances:

1.

2. Retired;

3. completely losing the ability to work and terminating the labor relationship with the unit;

4. Those who leave the country to settle down;

5. Repaying the principal and interest of the house purchase loan;

6. The rent exceeds the prescribed proportion of family wage income.

in accordance with the provisions of items 2, 3 and 4 of the preceding paragraph, the employee housing provident fund account shall be cancelled at the same time.

if an employee dies or is declared dead, the employee's heirs and legatee can withdraw the storage balance in the employee's housing provident fund account;

if there is no heir or legatee, the storage balance in the employee housing provident fund account will be included in the value-added income of the housing provident fund.