Social Security Tax

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20 Social Security Tax

TAX SCOPE

IMPLEMENTATION

TAX SCOPE

This tax is based on wages, and paid by both employers and employees. The revenue collected is earmarked for social security causes (in particular where they relate to pension, medical, or unemployment items).

The tax (sometimes referred to as a social security charge) is popular with many administrations around the world because of its positive social and financial significance for the development of the economy and social stability.

IMPLEMENTATION

In accordance with the objectives outlined by various bodies at various times, as discussed below, China will implement Social Security Tax at the appropriate time:

  • The Ninth 5-Year Plan of the People's Republic of China on National Economic Development and Social Development and the 2010 Future Objectives passed at the Fourth Session of the 8th National People's Congress (NPC) on March 17, 1996.
  • The Tenth 5-Year Plan of the People's Republic of China on National Economic Development and Social Development passed at the Fourth Session of the 9th NPC on March 15, 2001.