How to calculate the personal pension tax credit?

The calculation method of individual pension tax credit is as follows:

1. Calculate taxable income, that is, the balance of pre-tax income after deducting various deductions (such as social security and provident fund);

2. According to the taxable income, find out the applicable tax rate and deduct it quickly to calculate the payable personal income tax;

3. Calculate the amount of 12% of the old-age insurance premium paid by individuals (no more than 3 times the monthly income), and deduct personal income tax based on this. The specific calculation method is as follows:

(Pay endowment insurance premium * 12%)* Applicable tax rate-quick deduction = tax credit.

Personal pension processing flow is as follows:

1. Choose an old-age insurance plan: choose an appropriate old-age insurance plan according to your own needs and economic situation;

2. Apply for old-age insurance: apply for old-age insurance from local social security agencies or insurance companies, fill in relevant application forms and submit necessary supporting documents;

3. Pay the endowment insurance premium: pay the endowment insurance premium according to the prescribed payment standard and frequency;

4. Accumulate old-age insurance: With the increase of age and the accumulation of insurance premiums, individual old-age insurance will gradually increase;

5. Retirement and pension: After reaching retirement age, you can apply to social security agencies or insurance companies for pension as a source of income after retirement.

To sum up, the apps provided by different regions and different pension management departments may be different, and the specific operation process may be different. Therefore, before the specific operation, it is recommended to understand the local pension withdrawal policy and the use of related apps.

Legal basis:

Article 16 of People's Republic of China (PRC) Social Insurance Law

Individuals who participate in the basic old-age insurance will receive the basic old-age pension on a monthly basis if they have paid a total of fifteen years when they reach the statutory retirement age.

Individuals who participate in the basic old-age insurance and pay less than fifteen years when they reach the statutory retirement age can pay for fifteen years and receive the basic pension on a monthly basis; Can also be transferred to the new rural social endowment insurance or urban residents' social endowment insurance, enjoy the corresponding pension insurance benefits in accordance with the provisions of the State Council.