The State Administration for Financial Supervision and Administration of China has issued a notice on the connection between the pilot of deferred commercial pension insurance for personal income tax and personal pension

The State Administration for Financial Supervision and Administration of China

Pilot Program for Personal Tax Deferred Commercial Pension Insurance and

Notice on Matters Related to the Connection of Personal Pension

The Shanghai, Jiangsu, Fujian, and Xiamen regulatory authorities of the State Administration of Financial Supervision and Administration, China Banking and Insurance Information Technology Management Co., Ltd., and pilot companies for personal tax deferred commercial pension insurance:

In order to implement the requirements of the "Opinions of the General Office of the State Council on Promoting the Development of Personal Pension", the "Implementation Measures for Personal Pension", and the "Notice of the China Banking and Insurance Regulatory Commission on Relevant Matters Concerning the Development of Personal Pension Business by Insurance Companies", and to promote the healthy and orderly development of personal pension business, the Ministry of Finance, the Ministry of Human Resources and Social Security, the State Administration of Taxation, and the State Administration of Financial Supervision have decided to carry out the pilot work of personal tax deferred commercial pension insurance and connect it with personal pension. The relevant matters are hereby notified as follows:

1、 The pilot companies of deferred personal income tax pension insurance should adhere to the principles of compliance, proactivity, and convenient operation, do a good job in policy promotion, optimize the processing process, safeguard the legitimate rights and interests of customers, and orderly carry out the connection between the pilot business of deferred personal income tax pension insurance and personal pension. In principle, all work should be completed by the end of 2023.

2、 China Bank Insurance Information Technology Management Co., Ltd. should strengthen the construction and operation management of the personal income tax deferred pension insurance information platform and the personal pension information platform in the banking and insurance industry, and support the connection between the pilot of personal income tax deferred pension insurance and personal pension.

3、 Yinbaoxin Company shall coordinate and confirm the information of individual income tax deferred pension insurance policies. Within 3 working days from the date of issuance of this notice, Yinbaoxin Company shall provide its individual income tax deferred pension insurance policy information to each pilot company based on the information platform of individual income tax deferred pension insurance, including basic information of policyholders, payment information, etc. Starting from September 1, 2023, China Banking and Insurance Corporation (CBIRC) will close the insurance contract new interface of the deferred income tax pension insurance information platform, stop the new account opening function for policyholders of deferred income tax pension insurance, and stop issuing tax deduction vouchers for deferred income tax pension insurance to policyholders.

4、 The pilot company will verify the information provided by the China Banking and Insurance Corporation with the relevant information of the company, and any inconsistent information should be confirmed with the China Banking and Insurance Corporation on a case by case basis. Within 15 working days from the date of issuance of this notice, the pilot company shall determine the information of the deferred personal income tax pension insurance policy and provide feedback to the China Banking, Insurance and Credit Insurance Corporation. Starting from September 1, 2023, pilot companies will stop selling individual income tax deferred pension insurance products to new customers and support the change of individual income tax deferred pension insurance policies to individual income tax deferred pension insurance policies.

5、 After the pilot company completes the integration with the banking and insurance industry platform system, it shall submit an explanation of the integration to the State Administration of Financial Regulation. The State Administration of Financial Regulation shall include its personal income tax deferred pension insurance products that have already been engaged in business in the list of personal pension insurance products. Pilot companies that have not carried out deferred personal income tax pension insurance business shall not include their deferred personal income tax pension insurance products in the list of personal pension insurance products.

Pilot companies applying for filing other personal pension insurance products should meet the requirements for insurance companies to conduct personal pension business.

6、 Pilot companies should support policyholders who have not yet entered the stage of receiving pension funds, and after completing the opening or designation of their personal pension account and personal pension fund account, apply to change their personal tax deferred pension insurance policies to personal pension deferred pension insurance policies.

7、 After receiving the application for policy change from the policyholder, the pilot company should remind them to verify the payment of personal income tax deferred pension insurance and personal pension fund account for the years 2022 and 2023. If the total payment of the above two items exceeds 12000 yuan in the current year, the policyholder can apply for a refund of the excess premium of personal income tax deferred pension insurance with relevant payment certificates. The pilot company should obtain confirmation from the policyholder whether a portion of the premium needs to be refunded.

If the policyholder requests a refund of premium, the pilot company shall verify the relevant proof within 10 working days, refund the excess premium, and obtain confirmation from the policyholder.

8、 After obtaining confirmation from the policyholder in accordance with Article 7 of this notice, the pilot company shall handle policy changes in accordance with the following procedures:

Perform preservation processing on deferred personal income tax pension insurance policies, such as changing the policyholder's bank account information, and notify the policyholder of the processing results;

Submit preservation information to the deferred pension insurance information platform for personal income tax;

Stop the business operations related to the policyholder's deferred personal income tax pension insurance policy;

After verifying the basic information of the deferred personal income tax pension insurance policy, the paid deferred personal income tax pension insurance premium information, account value information, etc. with the China Banking and Insurance Corporation, submit them to the banking and insurance industry platform.

9、 After the policy change is completed, the pilot company should provide reminders to the policyholder on the following matters and obtain confirmation from the policyholder:

The deferred personal income tax pension insurance policy has been changed to a personal pension deferred personal income tax pension insurance policy, and the policyholder will pay premiums through their personal pension fund account in the future; The policyholder needs to verify the total amount of contributions to their personal income tax deferred pension insurance policy and personal pension fund account. Based on the annual payment limit of 12000 yuan, the policyholder should reasonably arrange for subsequent contributions to the personal pension fund account during the remaining period of 2023. Contributions exceeding the limit cannot be deducted before personal income tax.

According to the Announcement of the Ministry of Finance and the State Administration of Taxation on Personal Income Tax Policies related to Personal Pension, regions such as Shanghai, Fujian Province, and Suzhou Industrial Park that have implemented pilot projects for deferred personal income tax pension insurance will be uniformly implemented in accordance with the relevant provisions of the announcement starting from January 1, 2022. That is, the expenses for purchasing deferred personal income tax pension insurance and paying fees to the personal pension fund account can be deducted from the comprehensive income or operating income of personal income tax within the limit of 12000 yuan per year.

10、 If the policyholder applies, the pilot company can process the personal pension and personal income tax deferred pension insurance policy through policy approval as follows:

Add a one-time collection method in the contract, with the collection amount being the product account value at the time of collection;

Add clauses in the contract that allow policyholders to withdraw, but in the case of new withdrawal, the cash value of the first three policy years shall not be less than 97%, 98%, and 99% of the account value.

The withdrawal and collection of funds related to the deferred pension insurance policy for personal pension and personal income tax shall comply with the requirements for closed management of personal pension fund accounts.

11、 In the process of connecting the pilot business of deferred personal income tax pension insurance with personal pension, the bank insurance and credit company should submit relevant information to the tax authorities as required.

Pilot companies carrying out personal pension and personal income tax deferred pension insurance policies should submit information to the banking and insurance industry platform in accordance with regulations. Bank insurance and credit companies shall submit relevant information to the personal pension information management service platform in accordance with regulations.

12、 Pilot companies shall not support policy change applications submitted by policyholders who have already started receiving pension funds.

13、 For policyholders who have already started to receive pension funds, pilot companies can add a one-time collection method in the personal income tax deferred pension insurance contract through policy endorsement based on their application. The amount of collection is the difference between the personal account value at the end of the accumulation period of the personal income tax deferred pension insurance product and the amount already collected. When individuals receive their income according to regulations, the pilot company shall withhold and pay their personal income tax on their behalf.

14、 From the date of issuance of this notice, the pilot company shall make a three-month announcement through its official website, and shall provide reminders on the following content through one of three methods: telephone, SMS, or written:

The schedule for the pilot company to carry out the pilot business of deferred personal income tax pension insurance and connect it with personal pension;

Requirements and procedures for policy changes and refunds for policyholders who have not yet entered the stage of receiving pension benefits;

The requirements and procedures for policyholders who have started receiving pension funds to apply for one-time collection;

The requirements and procedures for handling changes to individual pension and personal income tax deferred pension insurance policies;

The suspension of services on the information platform for deferred personal income tax pension insurance;

Requirements for closed management of personal pension fund accounts;

Personal pension tax preferential policies;

Other matters related to protecting the rights and interests of policyholders.

15、 Starting from January 1, 2024, the personal income tax deferred pension insurance information platform will cease to provide other services such as account management, renewal payment, and information inquiry for policyholders. After the comprehensive completion of the pilot project for deferred personal income tax pension insurance and the connection with personal pension, the information platform for deferred personal income tax pension insurance will cease to provide services. Pilot companies should do a good job in policy management for policyholders who have not joined the personal pension system.

16、 From now until December 31, 2023, the pilot company shall report to China Banking and Insurance Corporation (CBIRC) within 5 working days after the end of each month the progress of the connection between the pilot business of deferred personal income tax pension insurance and personal pension. China Banking and Insurance Corporation (CBIRC) shall, within 10 working days after the end of each month, summarize the situation of the pilot companies and submit a report to the State Administration of Financial Supervision.

State Administration for Financial Supervision and Administration

August 31, 2023

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