On The Perfection Of The Income Tax System Of Commercial Personal Insurance Policy Holders In China

Commercial insurance plays an important role in the establishment of a multi-level social security system in China.Based on the current stage of development and basic national conditions,the low level and wide coverage of social insurance can only meet the basic security needs of the vast majority of social members,but can not give all social members a rich and decent life.In contrast,the commercial operation mode determines the diversity of commercial insurance products,which can provide more products to meet the needs of people with different concepts and financial preferences,reflecting the efficiency of the market economy.At the same time,commercial insurance is a special commercial behavior,playing a role as a strong public welfare and social stabilizer.In recent years,as China has been witnessing a rapid development in insurance industry,though still in its infancy with large room for development,and insurance has become an indispensable financial asset for economy and our life.With the rapid development of commercial insurance,more social wealth appears in the form of commercial insurance.As a result,the insurance tax base is gradually expanding.At the same time,the tax rules related to policyholders of commercial insurance products are lagging behind.The majority of the public still simply consider commercial insurance interests as tax-free benefits,while many insurance practitioners still regard policies as a risk-free tax avoidance tool.The current tax law is too simple and obsolete for the insurance tax levy and exemption,failing to achieve fairness and justice,and can not cover the complicated situation.The absence of legislation leads to a certain degree of arbitrariness in law enforcement,while even some reasonable law enforcement actions can not be carried out effectively.At the same time,tax planning activities using policy instruments are always in progress.Therefore,there is an urgent need for a sound and clear guide to the rules of income tax laws.The development of the insurance industry needs all-round tax support.The tax system design of the insurance industry should take into consideration the basic characteristics,development stages and overall development strategy of the industry.As the personal income tax system of policyholders is most closely related to the interests of the overwhelming majority of the people,it is imperative to establish and perfect a reasonable insurance tax system in order to safeguard the legitimate rights and interests of policy holders,the authority of tax law,and social fairness and justice,and to control the cost of levy and reduce the loss of tax revenue.This article is divided into five chapters.The first chapter discusses the relevant theories of income tax and insurance characteristics,analyzes the justness,legitimacy and social functions of income tax,the attributes of commercial insurance,and the classification of the main life insurance products on the market at present.This will lay a theoretical foundation for the later chapters.The second chapter starts from the current tax law,summarizes and analyzes the tax-related provisions of insurance indemnity,policy interest and dividends,as well as the actual implementation cases;analyzes the pilot implementation of tax-premium health insurance and tax deferred endowment insurance.And then point out the problems.On this basis,the third chapter discusses the main methods of tax planning using insurance policies under the current legal framework on the basis of legal theory and insurance practice.The fourth chapter,based on the tax theory,combined with the comparative analysis of tax laws for other financial market departments,explores the legitimacy of insurance tax levy and exemption.The fifth chapter puts forward some suggestions on the legislation and implementation for the establishment of a fair and reasonable income tax system for policy holders.