When will social security taxes be merged

From January 1, 2019, the basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums, industrial injury insurance premiums, maternity insurance premiums and other social insurance premiums will be handed over to the tax department for unified collection. After the merger of the state tax and local tax agencies, a dual-leadership management system will be implemented between the State Administration of Taxation (SAT) and provincial (autonomous regions and municipalities directly under the central government) governments.

Legal Basis

Article 46, Paragraph 1 of the Program for Deepening the Reform of Party and State Institutions

In order to reduce the cost of collection and payment, rationalize the relationship of responsibilities, improve the efficiency of collection and management, and provide taxpayers with more high-quality, efficient, and convenient services, the state tax and local tax agencies at the provincial level and below will be merged to undertake the collection of various taxes and non-tax revenues in the areas under their jurisdiction. The national tax and local tax organizations at provincial and sub-provincial levels have been merged to take specific responsibility for the collection and administration of taxes and non-tax revenues in the areas under their jurisdiction. In order to improve the efficiency of the collection and management of social insurance funds, the basic pension insurance premiums, basic medical insurance premiums, unemployment insurance premiums and other social insurance premiums will be transferred to the tax department for unified collection.