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Tax exemptions for social security funds

By Bi Xiaoning (chinadaily.com.cn)
Updated: 2008-12-10 16:18

For social security funds, its interest from deposits and revenues from the securities market can be exempted from enterprise income tax, effective as of Jan 1 2008. Previously, these income gains got temporary tax exemptions.

According to the notice released by State Administration of Taxation on Tuesday, for social security funds, revenue derived from security funds, stocks and bonds are non-taxed revenue, including interest from deposits, dividends and other investment returns.

An industry expert said this measure can boost social security funds to invest in the stock market. Earlier, Dai Xianglong, chairman of the National Council for Social Security Fund, said that the fund is aimed at gradually enlarging its index investment.

According to statistics, the social security fund's revenue from deposit interest and the securities market was 113 billion yuan ($16.49 billion) in 2007.

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