The Social Insurance and Housing Provident Fund in Shanghai – Housing Provident Fund-Company Formation_Trademark Registration_Tax Service - Hong Kong CPA

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Immigrant Visa & HR - China

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The Social Insurance and Housing Provident Fund in Shanghai – Housing Provident Fund

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Before the new social insurance regulations were published in 2020, the social insurance were mandatory by the state, and the housing provident fund was not required. However, the new social security regulations published in 2020, according to the "Provisions on the Management of Housing Provident Fund", the housing provident fund is within the scope of mandatory payment, and the social security and provident fund must be paid at the same time in the future.

What circumstance can withdraw funds from the account?

Housing Provident Fund withdrawal business can be carried out when the following relevant conditions exist:

Purchase own-occupied house;
Purchase house with shared property rights;
Installation of elevators in existing multi-story houses;
Build, renovate, and overhaul self-occupied housing owned by the city;
Non-cooperative banks withdraw loans;
Early settlement of loans;
Pay the rental fee;
Low-income financial difficulties withdraw the applicant's family to pay the city's self-occupied housing property service fees;
Family life difficulties;
Retire;
Most or completely incapacitated;
Settlement abroad;
Departure pickup;
Dead or declared dead;
Expiry of voluntary payment period, correction of wrong payment, merger of duplicate accounts;
Not deposited in another place and sealed for more than half a year.

Can foreigners working in Shanghai, those who have obtained permanent (long-term) residency abroad, and residents of Taiwan, Hong Kong and Macao can participate in the housing provident fund?

Established labor (employment) relationship with employers in this city, and applied for the Shanghai Overseas Talent Residence Permit (or the original "Shanghai Residence Permit B"), "Foreign Employment Permit" and "Taiwan, Hong Kong and Macao Employment Permit" in accordance with the regulations, Employment Approval Certificate for Employment of Residents Abroad in Shanghai "and other documents, foreign permanent (long-term) residency rights and Taiwan, Hong Kong, and Macao staff who come to Shanghai, based on consultation with the unit, can declare the housing provident fund based on the current regulations, the deposit base and the deposit ratio are all implemented in accordance with the current regulations of this Municipality.

When applying for a housing provident fund loan, there are often cases where a reconsideration is required. In what circumstances will a reconsideration occur, how should it be handled?

Applicants who do not meet the requirements for provident fund loans due to discontinuous 6 months, arrears of payment, and overage during the loan application process. Reconsideration is required, the required materials are as follows:

Original purchase contract
Housing Provident Fund Account Number of Borrower, Spouse, and Common Borrower;
Original and copy of ID card, household registration book, marriage certificate;
Copy of "Inquiry Form for Housing Information Status under Family Name"( Inquiry by loan accepting agency);
If applying for a combination loan, the name of the sub-branches of the entrusted bank should be provided;
Other related materials.

How to withdraw housing provident fund to pay for housing rental?

Staff rental housing can only be withdrawn from the housing provident fund to pay the rent through the city's housing rental public service platform for online signing and filing. Except for renting affordable housing (public rental housing, low-rent housing) in this city. Applicants who rent a house that meet the following conditions may apply to withdraw the storage balance in the housing provident fund account of themselves and their spouse to pay for the rent:

The applicant has continuously deposited housing provident fund for 3 months in this city;
Applicants and spouses currently do not have their own houses in this city and rent housing;
Applicant and spouse currently have no housing provident fund loan, no housing provident fund withdrawal housing loan entrustment, etc.;
Applicants and spouses can only withdraw the housing provident fund to pay for the rental of a house;
The applicant's leasing behaviour should comply with the relevant provisions of this Municipality's housing leasing.
Two or more individuals without a spouse relationship participate in the lease together, and only one of the applicants and spouse can withdraw the housing provident fund to pay for the rental fee within the same period.

Whether the housing provident fund loan can be repaid in advance and whether it will charge a penalty?

The loan can be repaid in advance. Partial repayment of borrowers in advance can be applied for the early return of the principal and interest of the housing provident fund personal loan, and the amount of each repayment should not be less than 6 months of the housing provident fund loan principal and interest; if the borrower applies for the early return of the entire housing provident fund loan balance, it will not be subject to the time limit for loan. The borrower does not have to pay liquidated damages for prepayment of housing provident fund loans.

Q:	How to withdraw the housing provident fund if you can't provide the invoice for the purchase of the foreign ownership?
A:	When purchasing a housing provident fund for ownership of self-occupied housing, you must provide a full invoice for the purchased housing. If you are buying a second-hand house and cannot provide an invoice for the purchase, you can provide a deed tax payment certificate issued by the national tax department.

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