A Research Of Tax Policy For China's Occupational Pension

Occupational pension is the second pilar of the three pilars of the retirement pension system and an indispensable addition to the basic retirement pension. Growing occupational pension will be an important part of building multi-level pension system in China. Being a voluntary supplement to the basic retirement pension system, its growth will be impossible without government's economic incentive. Occupational pension possesses a strong external nature and government intervention is necessary. Due to its external nature, tax benefit can be used to stimulate the growth of occupational pension. Tax benefit is used as an important leverage in foreign countries. Occupational pension, however, has been growing slowly in China. Lack of tax benefit or insufficient tax benefit is the cause of the slow growth. This thesis first introduces tax policies related to pension plans in foreign countries. Then we provide comparative analysis on occupational pension tax systems in western countries. After that, we conduct an in-depth study on the major issues our government faces in the exploration and execution of occupational pension tax in history and in modern days. Based on the above analysis, this thesis proposes the EET tax model. At last, the thesis states the principles in designing occupational pension tax system and learning from pension tax policy in foreign country we discuss how to design occupational pension tax policies in China.