Is social security tax levied in China?

As of March 2065438+2008, social security tax has not been levied in China.

The proposal of levying social security tax in China appeared as early as 1996. The Ninth Five-year Plan for National Economic and Social Development and the Outline of Long-term Goals for 20 10 proposes to levy social security tax gradually. Later, the relevant person in charge of the financial department also said on different occasions that the social security tax would be studied.

Social security tax, also known as "social insurance tax", mainly refers to a purpose tax paid by employees and employers respectively based on the amount of wages paid by enterprises. Taxes are mainly used for various social welfare expenditures. In terms of tax rate, a proportional tax rate is generally implemented, and employers and employees each bear 50%. Employers and employees in different countries use different tax rates. Social security tax has become one of the main taxes in western countries. All employers and employees employed in the tax-paying country, regardless of their nationality and place of residence, must bear the social security tax obligations of that country.

In developed countries and most developing countries, social security tax is generally set up, and social security funds are raised by collecting social security tax, which is coordinated throughout the country. In China, social security such as pension, medical care and unemployment is mainly in the form of collecting social insurance premiums, and most of them are coordinated at the provincial level. Because the provinces are doing it themselves, the standards for raising and distributing it are different. If we raise funds according to the social security tax, we need to plan as a whole.