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.
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
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
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
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)
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.
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.
