Managers alerted to potential of China tax breaks

Industry players expect new tax breaks for contributions to enterprise annuity in China to drive asset growth in such schemes, although suspect it will take time to catch on. Under the incentive – effective on January 1 and seen as China’s version of the US’s 401K pension plan – up to 4% of an employee’s contributions of average monthly salary from the prior year are tentatively exempt from individual income tax. The incentive also temporarily exempts an employer’s contributions…