1. INTRODUCTION

Shanghai Housing Accumulation Fund, commonly known as Shanghai Housing Provident Fund (HPF), is a mandatory savings plan for employees in Shanghai to help them purchase housing, improve their living conditions, and support their retirement. This article aims to provide an overview of HPF and how to withdraw from the fund.

2. ELIGIBILITY FOR WITHDRAWAL

To be eligible for HPF withdrawal, one has to meet the following criteria:

Having paid into HPF for at least one year continuously

Having no unpaid loan or overdue repayment in relation to the HPF account

Not having used HPF for housing purchase or repayment within the last two years, unless the property was sold or confiscated by the government

Being over 55 years old or having a medical condition that has rendered the depositor permanently unable to work

3. TYPES OF WITHDRAWAL

There are several types of HPF withdrawal, such as:

Housing Provident Fund Withdrawal for housing purchase or repayment

Non-housing Provident Fund Withdrawal for education, medical treatment, or other personal needs

Special Withdrawal for job loss, severe illness or disability, natural disasters, or death

Combination Withdrawal of both housing and non-housing amounts

4. PROCESS OF WITHDRAWAL

The process of HPF withdrawal varies depending on the type of withdrawal. Generally, the following steps apply:

Submit an application to the HPF management center with necessary documents

Wait for approval and receive notification of the withdrawal amount

Withdraw the amount from designated banks or via online banking

5. DOCUMENTS REQUIRED FOR WITHDRAWAL

The following documents are typically required for HPF withdrawal:

Valid identification documents of the HPF depositor

Proof of employment or a work certificate issued by the employer

Proof of housing ownership or housing loan repayment (for housing withdrawal)

Medical certificate (for medical withdrawal)

Evidence of household financial status and the purpose of withdrawal (for non-housing withdrawal)

6. TAX IMPLICATIONS

HPF withdrawals are generally not subject to individual income tax or business tax. However, if the withdrawal amount exceeds the balance of the HPF account, the excess amount may be taxed as regular income at a rate of 20% or treated as a gift tax. Also, if one withdraws from HPF before the fifth year of participation, he or she may be subject to a penalty equal to 10% of the withdrawal amount.

7. CONCLUSION

In conclusion, HPF is an important savings plan for employees in Shanghai that can help them achieve their housing and financial goals. Eligible employees are strongly encouraged to enroll and take advantage of the various types of withdrawal options available.