Personal tax rate and unit tax rate of endowment insurance

The individual tax rate and unit tax rate of endowment insurance are 8% and 20% respectively.

The contribution rate of pension insurance units is 20%, and the contribution rate of individuals is 8%. Old-age insurance, the full name of social basic old-age insurance, is a social insurance system established by the state and society in accordance with certain laws and regulations to solve the basic life of workers who reach the working age limit stipulated by the state and terminate their labor obligations or quit their jobs because of old age.

Personal pension has three tax policies:

1, the payment link shall be deducted from the comprehensive income or operating income before tax according to the limit standard 12000 yuan/year;

2. The investment link is included in the investment income of the personal pension fund account, and personal income tax is not levied temporarily;

3. In the process of collection, the personal pension received by individuals is not incorporated into comprehensive income, but individual income tax is paid separately at the rate of 3%. The tax paid is included in the salary income.

Because there is no need to pay tax, pre-tax deduction can not achieve the purpose of reducing tax, but it needs to pay 3% tax when receiving it; For this group of people, investing in personal pension not only does not enjoy preferential treatment, but also bears additional taxes and fees, which is not suitable for investing in personal pension system; It is more appropriate to directly purchase pension funds, commercial pension insurance and other pension products, not through personal pension accounts.

Individual pensions can be tax-free:

1, at the time of payment, the corresponding amount of personal pension is subject to pre-tax deduction;

2. When investing, personal pension investment income will not be taxed temporarily;

3. At the time of collection, personal pension only needs to be taxed at 3% of the amount.

To sum up, it is more appropriate to buy pension products such as pension funds and commercial pension insurance directly, not through personal pension accounts.

Legal basis:

Article 21 of People's Republic of China (PRC) Social Insurance Law

The treatment of new rural social endowment insurance consists of basic pension and personal account pension. Rural residents who participate in the new rural social endowment insurance meet the conditions stipulated by the state and receive the benefits of the new rural social endowment insurance on a monthly basis.