20 June 2019

Govt to launch tax-deferred annuity scheme in 2014, paper says

The government will start implementing next year a tax-deferred annuity scheme patterned after the 401(k) retirement plan in the United States, the Beijing Times reported Sunday, citing a notice jointly issued by the Ministry of Finance, the Ministry of Human Resources and Social Security and the State Administration of Taxation. Under the scheme, employees will not be taxed on their contributions to pension plans until they start withdrawals after retirement. The new system is aimed at easing the burden on employees while helping in the development of the capital market, analysts were quoted as saying.

– Contact HKEJ [email protected]



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