As a foreigner living in Guangzhou, have you ever thought about bringing in an end to the days of house renting and then having your own house here?
If you have, then you must learn about this welfare policy in China --- Housing Provident Fund.
01
What is Housing Provident Fund?
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02
What qualifications should
a foreigner have so that he/she
can buy a housing provident fund?
According to related policy, foreigners with China′s Permanent Residencecan buy and use a housing provident fund, as same as Chinese citizens
03
How is the fund calculated?
Formula: Basic Amount×( Employer Payment Rate ＋Employee Payment Rate) = Housing Provident Fund Deposit
According to the latest policy, the payment rate should range between 5% and 12% and the specific rates for the employer and employee can be decided by themselves.
The Basic Amount for foreigners in Guangzhou should behigher or equal to 4800 RMB
Let′s suppose the Basic Amount and the payment rate for a foreign executive are the minimum one, then his HousingProvident Fund will be:
4800× ( 5% ＋ 5% ) =480 RMB
04
What benefits will you get after paying
the housing fund deposit?
The Housing Provident Fund is free for Individual Income Tax and Interest Income Tax.
If you or your family is facing with any type of emergency that’s stipulated in the policy, you can also withdraw money from your housing fund account to deal with your financial trouble.
When you retire, you can withdraw all the remaining money( including all the principal and interest) off your account and then cancel the account, which means you get an old-age pension.
You can apply for a Housing Provident Fund Loan when you buy a house, which has a lower interest rate than regular bank loans.
05
When and how can you withdraw
your housing fund?
If you want to withdraw your housing fund to pay your rent, then you can withdraw it every 6 months. You can enjoy the same rightsand fulfill the same obligations as Chinese citizens. So, just like Chinese citizens,here are the circumstances under which you can withdraw your housing fund:
1. When your plan to buy, build, rebuild or renovate a private house under your ownership;
2. When you're going to retire;
3. When you become unable to work or severely disabled;
4. When you return to and settle in your home country or Hong Kong, Macao or Taiwan;
5. When you are to repay your housing loans for your private house;
6. When your monthly rent exceeds your whole family’s total monthly incomeby at least 15% ;
7. When you have terminated your employment contract with your company;
8. When you have diedor been pronounced dead.
9. When you have been unemployed for over a year since you terminated your employment contract with your company;
10. When your family gets into serious financial trouble due to diseases or accidents.
11. When your family is having a difficult time as a result of natural disasters or any other type of emergency.
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