China's Government announced recently that a local insurance company had issued the country's first tax-deferred pension insurance policy, saying it marked the beginning of tax-deferred pension plans in China.
According to a report from the state news agency, Xinhua, the policy was issued in Shanghai on June 7, 2018, by China Pacific Life Insurance Co., Ltd. It is said to follow the launch in May of pilot tax-deferred pension insurance projects in Shanghai, Fujian province, and Suzhou Industrial Park in Jiangsu province.
China is allowing those that make contributions to such a plan to delay tax on that income until they retire or draw money from the fund. Xinhua reported that six insurance companies have been authorized to provide tax-deferred pension schemes.