The Preferential Tax Policy Of Enterprise Annuity And The Balance Between Equity And Efficiency

The construction of multiple-arrangement of endowment insurance plan has become the focus of most countries in settling pension related problem. Generally, the multiple-arrangement of endowment insurance plan refers to the following: the first arrangement of national basic pension plan, the second of additional endowment insurance for enterprises (enterprise annuity), the third of personal commercial endowment insurance. A tendency recently for innovation of endowment insurance system is: gradually reduce the first arrangement of security and enlarge the 2nd and 3rd arrangement of security.As main instrument of national macro-economic measure and essential content of national industrial policy, tax policy would exert great effect on the development of enterprise annuity. We can safely say that the choice of tax policy would be the decisive factor of Chinese enterprise annuity.The favorable tax policy of enterprise annuity is a reallocation measure of national income. The economic situation of China and its income distribution principal, that is,'prioritize efficiency, take equity into consideration too', determines that the tax policy of enterprise annuity has to take equity and efficiency both into consideration. We can't ignore any one of the two, or we will get punished for that.