SHENZHEN residents who contribute no more than 1,402 yuan (US$213) to the housing fund each month can have the amount deducted from their income for tax purposes, according to Qian Yong, head of Shenzhen Local Taxation Bureau.
According to the State regulation on housing fund and income tax, if the amount contributed to the housing fund is no more than 12 percent of the contributor s base salary, it is exempt from income tax.
However, the contributor s base salary should be no more than three times the city s average monthly salary for the previous year.
The tax-free threshold for Shenzhen residents is 1,402 yuan per month, based on Shenzhen s average monthly salary of 3,893.58 yuan in 2010.
The local taxation bureau would announce the tax-free threshold each year, said Qian.
(Tina Chen)
