China has introduced tax breaks for commercial personal pension schemes to incentivize more people to save for their retirement, fleshing out details of a framework released by the State Council in April to grow the private pension sector.
Annual contributions of up to 12,000 yuan ($1,673) paid into state-backed commercial personal pension accounts will be tax-deductible, and income tax will not be levied on any investment gains from the pension funds, according to decisions announced at an executive meeting of the State Council on Monday chaired by Premier Li Keqiang.
