Tax
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Official Response: Pension Exempt from Income Tax, Individual Pension Payouts Taxed at Lowest Rate
The Beijing Tax Bureau details the tax treatment of retirement income. Traditional pensions are exempt from individual income tax. Personal pension plans, capped at 12,000 yuan annual contributions with pre-tax deduction benefits, are taxed at a flat 3% rate upon withdrawal. This rate applies to the total withdrawal amount, including contributions and investment gains, promoting the utilization of these supplemental retirement schemes.
