Reforming the System of Personal Income Tax and Social Security Contributions (ADB-51021-001)

Countries
  • China
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Oct 24, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of People's Republic of China
The holder of the loan, grant, or other investment.
Sectors
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 0.30 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Dec 19, 2017

Disclosed by Bank Oct 25, 2017


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Project Description
The proposed knowledge and support technical assistance (TA) will develop policy recommendations for the People's Republic of China (PRC) to reform its personal income tax (PIT) and social security contribution (SSC) systems and provide training and capacity building for implementing these reforms. The TA request is part of a broader initiative by the government to adjust the tax system to bring it in line with the economic and social development status of the PRC. The TA will explore options to reform the system of PIT and SSC drawing on the experience and good practice in selected Organization for Economic Cooperation and Development (OECD) countries. Specifically, the TA aims to reform the PIT and SSC system with to (i) increase the contribution of PIT to tax revenue, and (ii) address distortions in the PIT and SSC system, notably those that affect the progressivity of the system and give rise to labor market segmentation.
Investment Description
  • Asian Development Bank (ADB)
Contact Information
Ministry of Finance Sanlihe, Xicheng District Beijing,100820 People's Republic of China ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main