Core Viewpoint - The basic pension received after retirement is exempt from individual income tax, clarifying a misunderstanding that arose from a recent announcement [2][3][4]. Group 1: Tax Exemption on Basic Pension - Basic pensions, also known as retirement funds, are not subject to individual income tax as per the Personal Income Tax Law of the People's Republic of China [4]. - The Beijing Taxation Bureau confirmed that retirees do not need to pay individual income tax on their monthly pension [2][3]. Group 2: Distinction Between Personal Pension and Basic Pension - Personal pensions are different from basic pensions; they are a supplementary pension scheme supported by government policy, voluntary, and market-operated [5]. - Contributions to personal pensions can be deducted from income for tax purposes, and upon withdrawal, only a minimum tax rate of 3% applies [5][6]. - For example, if an individual contributes 12,000 yuan to a personal pension while being taxed at a 20% rate, they can enjoy a tax benefit of 2,400 yuan, paying only 3% tax upon withdrawal [6].

Core Viewpoint - The article clarifies that basic pensions received after retirement are exempt from individual income tax, while personal pensions have specific tax benefits and obligations [1] Group 1 - The Beijing Taxation Bureau's 12366 hotline confirms that basic pensions do not require individual income tax payments [1] - Personal pensions, which are government-supported and market-driven, have an annual contribution limit of 12,000 yuan and offer tax deductions during contributions [1] - Upon withdrawal, personal pensions are taxed at a minimum rate of 3% [1]