The housing accumulation fund is deducted from the employee's salary, and the unit pays part for the employee. The deposit base of provident fund is my average salary last month, and the monthly deposit ratio is 5%- 12%. Enterprises should stipulate the proportion of payment according to the actual situation. But the minimum shall not be less than 5% and the maximum shall not be higher than 12%. According to the national regulations, the employer should register the deposit of provident fund, set up a provident fund account and remit the provident fund every month, which means that the housing provident fund is also mandatory.
Do I have to pay taxes on the personal part of the provident fund?
1. General housing provident fund is not taxed. Units and individuals who exceed the standard and need to pay personal income tax are exempted from personal income tax if they withdraw housing provident fund and pay it to designated financial institutions at a deposit ratio of not more than the approved deposit base and not more than 20%. If the housing provident fund exceeds the approved deposit base or the specified proportion, the tax authorities will incorporate the excess into the personal current salary income and levy personal income tax;
2. According to the relevant regulations, the housing provident fund actually paid by units and individuals within the range of no more than the average monthly salary of employees in the previous year 12% is allowed to be deducted from the personal taxable income. The average monthly salary paid by units and individual employees to the housing provident fund shall not exceed 3 times the average monthly salary of employees in the city where the employees are located in the previous year. Specific standards shall be implemented in accordance with relevant local regulations. The part of the housing provident fund paid by units and individuals that exceeds the above-mentioned prescribed proportion and standard shall be incorporated into the personal current salary and salary income, and personal income tax shall be levied.
I hope the above content can help you. Please consult a professional lawyer if you have any other questions.
Legal basis: Article 16 of the Regulations on the Administration of Housing Provident Fund.
The monthly deposit amount of employee housing provident fund is the average monthly salary of employees in the previous year multiplied by the deposit ratio of employee housing provident fund.