According to the spirit of Regulations on the Management of Housing Provident Fund, Guiding Opinions of the Ministry of Construction, the Ministry of Finance and the People's Bank of China on Several Specific Issues Concerning the Management of Housing Provident Fund (Jian Jin Guan [25] 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 12% of the average monthly salary of employees in the previous year.

the average monthly salary paid by units and individual employees into the housing provident fund shall not exceed 3 times of the average monthly salary of employees in the city with districts where 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 specified proportion and standard shall be incorporated into the current salary and salary income of individuals, and personal income tax shall be levied. ?

Extended information

According to the relevant regulations of the state, the housing accumulation fund consists of two parts: unit deposit and individual deposit: the unit deposit part is the deposit base multiplied by the unit deposit ratio; The individual deposit part is the deposit base multiplied by the individual deposit ratio.

the deposit base refers to the average monthly total wages of employees in the previous year calculated according to the Provisions on the Composition of Total Wages issued by the National Bureau of Statistics. The highest proportion of unit deposit and individual deposit shall not exceed 2%.

The housing accumulation fund drawn by units and individuals according to the deposit ratio of not higher than the approved deposit base and not higher than 2% and deposited in designated financial institutions shall not be included in the personal income from wages and salaries in the current period, and shall be exempted from personal income tax.

if the housing provident fund is withdrawn and paid in excess of the approved deposit base or the specified proportion, the tax authorities will incorporate the excess into the individual's current salary and salary income and levy personal income tax.

Reference: Baidu Encyclopedia Housing Provident Fund.