2010-1-11 14:57:54State Administration of Taxation: Personal Income Tax on Annuity

The State Administration of Taxation promulgated "the Notice of Administrative Regulations on Individual Income Tax on Annuity" (hereinafter referred to as "the Notice") on December 10, 2009. The Notice has been effective as of the promulgation date.

According to the Notice, the annuity paid into the employee's personal account by the employer enterprise should be considered as part of the employee's income for his employment, or part of his taxable income. The personal tax on the annuity should be calculated in accordance with relevant tax rules on the item of "salary and wages", and withheld by the employer enterprise. Should the annuity be paid quarterly or yearly, when calculating the personal tax, such annuity should be considered as part of the employee's income of the month when the enterprise pays.

Should any partial of such annuity not actually belong to the employee for the account of the annuity's conditions, the relevant personal income tax having been withheld should be refunded to the employee.