Article 4 of the 2007 Personal Income Tax Law, amended by Clause 2, Article 1 of the 2012 Amended Personal Income Tax Law, supplemented by Clause 3, Article 2 of the 2014 Amended Tax Law, provides as follows:
Income is tax-free
1. Income from real estate transfer between husband and wife; biological father, biological mother and biological children; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; grandfather, grandmother and grandchildren; grandfather, grandmother and grandchildren; brothers, sisters, and siblings together.
2. Income from transfer of housing, residential land use rights and assets attached to residential land of individuals in cases where the individual only has a single house or residential land.
3. Income from the value of land use rights of individuals allocated land by the State.
4. Income from inheritance or gifts of real estate between husband and wife; biological father, biological mother and biological children; adoptive father, adoptive mother and adopted child; father-in-law, mother-in-law and daughter-in-law; father-in-law, mother-in-law and son-in-law; grandfather, grandmother and grandchildren; grandfather, grandmother and grandchildren; brothers, sisters, and siblings together.
5. Income of households and individuals directly engaged in agricultural production, forestry, salt making, farming, and fishing of aquatic products that have not been processed into other products or have only undergone normal preliminary processing.
6. Income from conversion of agricultural land of households and individuals assigned by the State for production.
7. Income from interest on deposits at credit institutions, interest from life insurance contracts.
8. Income from remittances.
9. The salary for night work and overtime work is paid higher than the salary for daytime work or during working hours as prescribed by law.
10. Pensions are paid by the Social Insurance Fund; Pensions are paid monthly by the voluntary pension fund.
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Thus, pensions are income exempt from personal income tax. Therefore, even if pensions are increased, pensioners will not have to pay personal income tax.
