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How to pay taxes on the individual part of housing provident fund
Tax payment method for the individual part of the provident fund: if the provident fund paid by an individual does not exceed 12% of the average monthly salary of the employee in the previous year, it is allowed to be deducted from the personal taxable income; However, the excess should be incorporated into the individual's current salary and salary income, and personal income tax will be levied according to the prescribed tax rate.

legal ground

Article 2 of the Notice of the Ministry of Finance and 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.

According to the spirit of the Regulations on the Management of Housing Provident Fund and the Guiding Opinions of China People's Bank of the Ministry of Construction on Several Specific Issues Concerning the Management of Housing Provident Fund (J.J.G. [2005] No.5), the actual housing provident fund paid by units and individuals is allowed to be deducted from the personal taxable income within the range of not exceeding the average monthly salary of employees in the previous year 12%. The average monthly salary paid by units and individual employees to the housing provident fund shall not exceed 3 times of the average monthly salary of employees in the city where the employees work in the previous year. The specific standards shall be implemented in accordance with relevant local regulations.

The housing accumulation fund paid by units and individuals in excess of the above-mentioned prescribed proportion and standard shall be incorporated into the current salary and salary income of individuals, and personal income tax shall be levied.