The Study On Tax Preferential Policy Of Private Pension

Along with the accelerated process of population aging, how to protect the elderly after retirement has become an important issue of China's economy. As an important supplement to the basic pension, private pension plays an important role in China's specific situation of aging population and the economic restructuring. However, due to the lack of preferential tax policies for private pensions, the current scale of private pensions funded by employers is very limited.This paper discusses how to use the tax incentives to promote the development of private pensions. On one hand, the study on theories and practices of preferential tax treatment of foreign private pensions are reviewed and summarized, providing some reference for our government. On the other hand, based on the forecasts of China's future population structure and economic situations, this paper builds an actuarial model to simulate and analyze the improvement of retirement and the tax cost of government in different tax policies from both the typical individuals and the country'perspective, and get the best tax preferential policy for the government. All in all, this paper analyzes the tax treatment of private pensions and finds that 15% is the proper proportion. Based all the discussions above, the paper gives some policy recommendations and also gives some implement suggestions for the policy makers.