Do the math for personal pension tax benefits
The 2023 personal income tax special additional deduction information filling has begun!
Many people have found that, in addition to filling in the special additional deductions as in previous years, the "Individual Income Tax" APP has added the "Personal Pension Deduction Information Management" function. Pre-tax deduction is carried out at the stage of payment or final settlement.
How much tax can I save by opening a personal pension account and making deposits, investments, and receipts?
Let's do the math together.
Deposit the base amount of tax deduction for the year, with a maximum of 12,000 yuan per year
The personal pension system is a supplementary pension insurance system supported by government policies, voluntary participation by individuals, and market-oriented operation.
This "government policy support" is largely reflected in preferential tax policies.
Zheng Bingwen, director of the World Social Security Research Center of the Chinese Academy of Social Sciences, said that preferential tax policies are the first driving force for the development of the third pillar of personal pension plans. The purpose of postponing personal tax collection until decades later when account holders retire is to incentivize citizens to build personal pensions.”
Tax incentive support is first reflected in the deposit stage.
The Ministry of Finance and the State Administration of Taxation have made it clear that the personal income tax policy implements deferred tax benefits for personal pensions. In the payment link, the individual's payment to the personal pension fund account shall be included in the comprehensive income or operating income in accordance with the annual limit standard of 12,000 yuan. Deduct according to fact.
Sun Bo, deputy secretary-general of the China Pension Finance 50 Forum, analyzed that the personal income tax preferential support policy implemented for the payment and deposit of personal pensions, "can be understood as adding personal pension deduction items in addition to special tax deductions such as supporting the elderly. The quota is 12,000 yuan per year. However, this deducted fund must be put into a special account for retirement investment, and can not be received until retirement.”
Fang Lin, who works in a state-owned enterprise in Beijing, has an annual income of more than 300,000 yuan. Comparing the two kinds of personal tax payment status whether to participate in personal pensions or not, she calculated an account: "The calculation is based on the annual salary of 300,000 yuan, not counting special additional deductions. With a threshold of 60,000 yuan and a social security provident fund of 60,000 yuan, the tax base is 180,000 yuan, multiplied by the applicable tax rate of 20%, and then subtracting the quick deduction of 16,920 yuan, the annual personal tax I should pay is 19,080 yuan."
Fang Lin found that if she contributes 1,000 yuan a month to personal pension and uses up the annual limit of 12,000 yuan, the base will drop to 168,000 yuan after pre-tax deduction. After all, I can save 2,400 yuan in taxes every year if I make the top contribution to participate in the personal pension, which is only a discount in the payment and deposit link, not counting the investment and receiving links.” Fang Lin said.
This level is not the "ceiling" for enjoying tax benefits in the deposit link.
It is understood that residents who participate in personal pensions can save up to 5,400 yuan in taxes per year.
According to expert analysis, relevant preferential tax policies are more attractive to middle and high-income groups.
According to China's current personal income tax system, seven levels of excessive progressive tax rates are adopted when calculating the tax payable. The higher the income of residents, the better the effect of participating in personal pension tax savings: for example, when residents apply the highest level of personal tax rate, which is 45 %, after deducting 12,000 yuan from the comprehensive income before tax, the tax payable will be reduced by 5,400 yuan compared with the case of not participating in the personal pension.
The tax rate is lower when you receive it, and it is levied separately at 3%.
Under the deferred tax collection mode, personal income tax is temporarily not levied on the payment and income links, and the tax obligation is deferred to the actual pension receiving link, reducing the current tax burden of the policyholder.
In the receiving link, the tax incentives are not small.
The Ministry of Finance and the State Administration of Taxation have clarified that personal pensions received by individuals are not included in comprehensive income, and individual income tax is calculated and paid separately at a tax rate of 3%.
What level is this "3%"?
Compared with the old policy in the pilot period of personal tax-deferred commercial pension insurance, 25% of the tax was levied on individuals receiving commercial pension before, and the remaining 75% was calculated and paid at a rate of 10%. The actual tax burden of this link is 7.5%.
Li Xuhong, director of the Institute of Fiscal Policy and Application of the Beijing National Accounting Institute, believes that reducing the actual tax burden on personal pension income from 7.5% to 3% has increased the benefit of the masses with "real money".
Although the tax rate of 3% is not high, many residents have doubts: Personal pensions enjoy tax benefits in the payment and deposit process, but they have to pay taxes when receiving them. Is it worthwhile to "come back and forth" like this?
Experts point out that the tax rate is set at 3%, which increases the attractiveness of personal pensions to people with a monthly income of 5,000 to 8,000 yuan (that is, an annual income of 60,000 to 96,000 yuan).
It is understood that for people whose annual comprehensive income is slightly higher than the threshold of 60,000 yuan, the applicable tax rate for paying individual tax is 3%, which is equal to the tax rate when receiving personal pensions.
Industry insiders analyzed that this group of people put part of their income in the current period into their personal pension accounts, and they will defer tax payment at a rate of 3% when they receive it in the future. From the perspective of tax burden, it is "no profit, no loss", but comprehensively considering investment income And other factors, it is still worth participating.
"People with a personal tax rate of 3% in the current period have the same tax effect if they participate in personal pensions or not. However, the exclusive pension financial products that personal pensions can invest in have preferential rates, and participation is still beneficial. For example, personal pensions can For the public offering fund invested, the management fee and custody fee are directly discounted by 50%, and the sales service fee is not charged, and the subscription fee and partial redemption fee are exempted." Sun Bo said.
At the same time, for people with a monthly income of more than 8,000 yuan (annual income of more than 96,000 yuan), participating in personal pensions and enjoying tax incentives is "stable income without loss".
30-year-old Yu Haibo has been working for 5 years and earns more than 100,000 yuan a year.
"Young people have a lot of rigid expenditures, and their income is barely enough. They didn't want to participate in the 'third pillar' pension insurance. But after carefully reading the product introduction of mobile banking, they decided to participate. Idle chess."
Yu Haibo introduced that the personal tax rate applicable to his income level is 10%. “I plan to put 12,000 yuan in my personal pension account in the first year. With a tax rate difference of 7 percentage points, I can still save 840 yuan in taxes. If I can save a maximum of 12,000 yuan a year for 30 consecutive years, I can enjoy a tax benefit difference of 25,200 yuan. In addition, I can also benefit from personal pension The annualized rate of return is likely to be higher than 3% to obtain long-term investment income from the wealth management products of the account, even if inflation is considered, it is not a loss.”
However, some experts pointed out that participating in personal pensions to enjoy tax benefits is not cost-effective for all groups of people.
Since the personal pension is not incorporated into the comprehensive income when receiving it, and is taxed separately at a tax rate of 3%, it is not affected by the personal tax threshold.
For residents whose annual comprehensive income is lower than the individual tax threshold, it is currently not suitable to invest in personal pensions.
More than 10 million people opened accounts in the first month of launch, and the tax incentive policy has a strong "magnetism"
In the process of rapid "rolling out" of personal pensions, tax incentives have released a strong "magnetism" to people of different age groups and income levels.
Shen Tong, a Shanghai citizen who is over 50 years old, has a relatively high income and opened an account immediately.
Shen Tong found that after paying the top personal pension, he can enjoy a tax saving of more than 4,000 yuan per year only during the deposit stage. "The personal tax rate is 3% when receiving it, which is equivalent to the lowest tax rate under the current excessive progressive tax system. It is also very cost-effective. .”
It is understood that the personal pension system has been implemented in 36 leading cities (regions) across the country, and all workers who have established basic pension insurance relationships in the leading cities can participate in the personal pension system.
According to data released by the Ministry of Human Resources and Social Security, more than 10 million people opened accounts for personal pensions in the first month after they were launched on November 25 last year, and the start is generally good.
"Through the implementation of individual tax preferential policies, guiding and encouraging residents to participate in it will help improve residents' self-protection awareness, and will also help develop the third pillar of pension insurance, and promote the construction of a multi-level and multi-pillar pension insurance system." Li Xuhong said.
As of the end of last year, 23 banks, including state-owned banks, joint-stock banks and city commercial banks, have opened personal pension services.
The reporter found that most of the relevant banks have introduced in detail the tax preferential policies related to personal pensions on the mobile banking APP, and users can purchase related wealth management products after completing account opening online.
Many banks provide customers with targeted services in combination with supporting policies such as tax incentives and support.
According to the person in charge of Bank of Ningbo, as one of the five city commercial banks that can provide personal pension business, Bank of Ningbo will provide pension planning services to customers on a family basis, and plan channel projects for corporate units, combined with personal pension policies, Provide channel customers with comprehensive service solutions.
Overall, the tax benefits are reflected in the whole process of individual pension payment, investment, and receipt.
"Under the current system design, the preferential tax policy is not only reflected in the two links of deposit and receipt, but also in the investment link." Shen Tong analyzed that the investment income included in the personal pension fund account is not subject to personal income tax for the time being. Those who are capable and willing to make long-term investments are very attractive. "Closed management, flexible deposits, and no current pressure. The principal plus investment income can add up to a lot, which can increase a lot of security for the elderly. Participating in work It's not too late to open an account now!"
If the amount of personal pension contributions is small and the investment income is high, will there be an increase in the tax burden when receiving it?
Sun Bo said that the calculation shows that there is no such situation, "If the personal income tax is paid in the current period instead of deferred taxation, it seems that only the principal is taxed, but the tax part could have generated the same high income, so the current tax payment actually implies withholding taxation on future earnings.”
Wang Wenzheng