People often wonder if they can get a tax refund, but it’s important to understand that individual income tax is a mandatory duty and is generally not refundable, unless it’s overpaid.
However, certain contributions made to pension and medical insurance accounts can be refunded if any expats don’t plan to work in China any more and wish to leave.
There are specific procedures and documentation requirements that you need to follow. Here are the general steps to claim refunds for pension and medical insurance:
1. Pension Refund
a. Contact your employer or the local social security bureau:
Inform them about your intention to claim a refund of your pension contributions.
b. Gather required documents:
Typically, you will need to provide your passport, work permit, residence permit, and a letter of intent stating your intention to claim the pension refund.
c. Submit the documents:
Visit the local social security bureau and submit the required documents along with any additional forms or paperwork they may require.
d. Processing and approval:
The social security bureau will review your application and process the refund. The timeline for approval and refund may vary depending on the specific province or city.
2. Medical Insurance Refund
(Note: In most cities, medical insurance is handled by the medical insurance center, and the refund needs to be claimed separately. Make sure you know the correct authority before proceeding):
a. Contact the medical insurance center: Get in touch with the medical insurance center or the HR department of your employer to inquire about the refund process for medical insurance.
b. Submit the documents: Submit the required documents as instructed. Typically, you will need to provide your passport, work permit, residence permit, and medical insurance card.
It’s important to note that the specific procedures and requirements for claiming pension and medical insurance refunds may vary between provinces or cities in China. Therefore, it is advisable to consult with your employer, the social security bureau, or the medical insurance center for detailed information and guidance regarding the refund process.
In some cities, it is possible to assign someone to handle the procedure on your behalf by issuing a power of attorney. It’s advisable to contact the relevant authorities to confirm whether you need to personally submit the documents or if someone else can do it for you.
Another important point to consider is that if you have previously worked in a different city and have not claimed any refund, you may need to initiate the procedure 5-6 months in advance to transfer your pension to your current city. This is necessary in cases where social insurance is not connected across regions.
Generally, there are a couple of scenarios to consider:
- In some regions, social insurance is interconnected. In such cases, all you need to do is claim the refund in the last city you worked in, and you will receive the entire refund for that region. For example, if you are currently working in Guangzhou but used to work in Foshan (another city in Guangdong province), once you submit your refund application, you will receive the full refund.
- However, if you previously worked in a city outside of Guangdong province, you may need to apply for a social insurance transfer with the local social insurance authority before claiming the refund. Whether or not the transfer can be successful depends on the policies of the other city. Some cities may be reluctant to transfer funds out, in which case you would have no choice but to claim the refund directly from them. Therefore, we recommend initiating the entire procedure at least 6 months in advance.
Lastly, if you have worked for more than one employer, the name recorded in the social insurance system may not be consistent (such as the order of the name). Consequently, you may need to update the information before you can proceed with the refund claim.
Useful link:
Ministry of Human Resources and Social Security of the People’s Republic of China
