Individuals pay social security to pay local taxes.

Individuals do not need to pay personal income tax for the social security part. According to Article 1 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Individual Income Tax Policies for Basic Endowment Insurance, Basic Medical Insurance, Unemployment Insurance and Housing Provident Fund (Caishui [2006] 10), the basic endowment insurance, basic medical insurance and unemployment insurance actually paid by enterprises and institutions according to the payment ratio or method stipulated by the people's government of the country or province (autonomous region or municipality directly under the Central Government) shall be exempted from individual income tax; The basic old-age insurance premium, basic medical insurance premium and unemployment insurance premium actually paid by individuals according to the payment ratio or method stipulated by the state or the people's governments of provinces (autonomous regions and municipalities directly under the Central Government) are allowed to be deducted from the taxable income of individuals, and the social insurance premium paid by individuals in social security centers can be deducted before tax.

Legal objectivity:

People's Republic of China (PRC) Social Insurance Law Article 2 The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance to protect citizens' right to get material help from the state and society in the event of old age, illness, industrial injury, unemployment and maternity. People's Republic of China (PRC) Social Insurance Law Article 3 The social insurance system adheres to the principles of wide coverage, basic protection, multi-level and sustainability, and the level of social insurance should be compatible with the level of economic and social development.