Study Of The Tax Incentives Of Individual Savings-based Pension Insurance

With the rapid economic development and the big progress of human civilization, pension problems have increasingly become the focal point. As a common old-age social security system that countries have built, pension insurance has been highly valued since its establishment. The pension insurance system of three pillars has become the way that most countries set to address the pension problem.The three-pillar pension insurance system the means that, the first pillar of the social basic pension insurance, the second pillar means the supplementary pension insurance (annuity) built by the enterprises, and the third pillar of old-age insurance personal savings. China's pension system has also been basically established after years of continuous improvement.At present the world faces the challenge of an aging population, and the countries'public pension systems encounter the payments crisis. In order to alleviate the pressure brought about by the aging of the population of the government, countries have to make reform of pension insurance system against the current system, which mainly focus on reducing the responsibility of the government pension and expanding responsibilities of individuals, businesses and other market actors.Similarly, as China's aging population increases, government-led basic endowment insurance encounters increasing pressure and is unable to meet the needs of post-retirement life of older workers. Annuity and personal pension insurance should play a complementary role to form the three-pillar pension structure to meet financial requirements of the workers after retirement. In 1991, China has proposed to establish a basic old-age insurance, supplementary pension insurance and personal savings, a combination of old-age insurance and pension insurance system, the multi-storey. It has become a generally accepted concept of the academic community that the second and third pillar needs the policy support.Tax policy, as an important means of regulating the national economy and the national industrial policy, it plays important roles in far-reaching development of the pension system. Speeding up the introduction of the tax incentives will guide and encourage businesses and residents purchasing the annuity insurance, a way to obtain risk protection, thereby contributing to the development of commercial pension insurance.In December 13,2008 the State Council issued " the observations of current financial and promoting economic development " pointed out that, we should develop individual, group pension and support qualified enterprises to establish a multi-level old-age commercial insurance protection scheme, and study on other tax preferences given to old-age insurance policyholders such as deferred tax."Financial 30" for the first time sets a clear research on the tax preferences such as deferred tax given to pension insurance policyholders from the national level, which marks the official made the pace of tax incentives. It makes great significance to the development of the insurance industry. With the tax deferred mechanism, the insured will be expected to be charged with pre-tax premiums and should pay tax when collecting benefits. As the insured will be at different stages of life when purchasing and receiving the benefits, the marginal tax rate is highly different, so the tax deferred pension have very large tax breaks. This policy, once implemented, will greatly reduce the personal pension spending and indirectly encourage consumption, and at last will promote the rapid growth of premium. This article first analogizes the tax priorities established by the policy foreign countries for promoting the development of individual savings-based pension insurance, and then analyzes that in China's current old-age insurance system, the basic old-age insurance is not yet universal, but the second pillar, the enterprise annuity is still in very slow development, we should use tax incentives to support the individual savings-based pension to make rapid development, at last this article proposes specific tax policy recommendations.The first part is the introduction part of this article, which sets out the background and research significance, recalls the domestic academics on the tax incentives of individual savings-based pension insurance and abroad overviews of old-age insurance tax policy, in order to provide the theoretical groundwork of the discussion of later chapters. Scholars have analyzed the necessity and urgency of the development of China's individual savings-based pension insurance, and agree that individual purchase of old-age insurance will play an important role in alleviating the increasingly serious social issue in China; put forward the appropriate tax policy should be developed to encourage individuals to purchase old-age insurance towards the present slow development of old-age insurance. Most of the current research at home and abroad just make brief overview of foreign pension insurance system, and seldom make a systematic analysis combined with the actual situation of China; most of the research just discuss the stages of paying and receiving benefits and did not relate to the accumulation phase; most scholars arrived at the model of a viable and no further discussion, such as the tax base and how to determine the tax rate. This highlights the need for this study.The second part analyzes the development of individual savings-based pension insurance and the tax policy, on the basis of analyzing the development of China's individual savings-based pension insurance, combined with the mainstream trend of reform of old-age insurance system around the world, concluded that our country is in urgent need to develop individual savings-based pension insurance. And through the theoretical analysis of tax system, concluded that for making the largest incentive effects, if China's economic conditions permits, the country should take priority mode of EET model.The third part comprises the foreign tax policy of individual savings-based pension insurance and have reached the following revelation, first, make a clear orientation of the development of individual savings-based pension insurance, followed by using a sound regulatory system to guide and regulate, and tax design of the system should balance the fairness and efficiency.The fourth part mainly analyzes the situation of the tax deferred pension insurance in Tientsin and Shanghai and obtained the following revelation, tax policy priority must obtain support of the tax department, the policy should be designed easily and fairly, the should also deal with the investment benefits.The fifth section presents our personal the tax policy recommendations of individual savings-based pension insurance. A detailed analysis of the principle of tax policy was given, and puts forward the specific situations that should pay attention to when designing our tax policy, which includes taxes excellent model to be feasible, the tax base and tax rates, concluded that the implementation process should strengthen the tax administration.The article's main contribution and features are:First, the topics of novelty. Research on individual savings-based pension is a hot issue. In particular, the current Chinese Government attaches great importance to setting tax policy as soon as possible, this article is the study based on the scholars and deeply discusses the specific issues such as the tax base and tax rates.Second, the unique approach. This analogy is not only comprises the tax incentives of foreign countries, and introduces the situation of Tianjin and Shanghai of China's current pilot, so the article is targeted.Of course, there are also many shortcomings in this article that should be further studied. As the empirical analysis of the constraints, and difficulties encountered in the process of data collection, and tax policy of individual savings-based pension in China is still in the exploration stage, so this article lacks the empirical research, it has to be said that this is the thing I mostly regret. I hope that I can make breakthroughs during further study and research.