The state will formulate preferential tax policies to encourage qualified personnel to participate in the personal pension system and receive personal pensions according to regulations. Participating in the personal pension system can be used to deduct some taxes and reduce the pressure of tax payment. The basic old-age insurance premiums drawn by enterprises and individuals in accordance with the proportion stipulated by the state and local governments and actually paid to designated fund institutions are not included in personal current salary income and are exempt from personal income tax.

Second, analyze the details

The social endowment insurance purchased by the company for employees can also be deducted before tax, and the basic endowment insurance premium, basic medical insurance premium and basic unemployment insurance premium paid by the company and enterprise for all employees in accordance with the provisions of the national and provincial people's governments can be deducted in accordance with the provisions of the tax law.

Three. Relevant laws

Article 4 of the Individual Income Tax Law of People's Republic of China (PRC) is exempt from individual income tax in accordance with the unified provisions of the state, such as settling-in expenses, resignation expenses, basic pension or retirement expenses, retirement expenses and retirement living allowances.

Four, the benefits of pre tax deduction of pension:

1, to participate in the individual pension system, you can get tax relief and enjoy tax concessions;

2. Special cash flow can be established for the elderly to avoid personal savings being consumed in large quantities;

3. It can optimize asset allocation, change single deposit and savings and real estate investment, increase stable and safe investment in commercial pension products, and accumulate personal pension wealth.