| This paper is divided into six parts to introduce the tax policies on enterprise annuity. The purpose of writing is to provide theories for the development of Chinese enterprise annuity and to help Chinese enterprise annuity develop rapidly and healthily through the research on the tax policies of enterprise annuity. The brief explanation about every part is as follows:Part I IntroductionThis part explains reasons why this paper does the research on tax policies of enterprise annuity, and provides the background and significance of the research. In 1970s, the public pension system of many countries of once was in a serious crisis which was characterized as the constant expansion of the deficit. On these circumstances, many countries are seeking measures of reform actively to ensure that they can provide staff a better life after their retirement. As a result, it is very important to support and develop the second pillar enterprise annuity. The enterprise annuity means the establishment of the voluntary complement annuities plan, which is on the basement of enterprises and staff's legal involvement in national endowment insurance to national. And its main part is employee welfare system. The enterprise annuity system is not only the different from commercial insurance, but also different from social endowment insurance. It is the pillar of social endowment security system; what is more, it is also the supplement of the endowment insurance system. The direct goal of the enterprise annuity system is to improve the level of the pension of staff.In 1990s, China has already begun to advocate and encourage the establishment of the enterprise pension plan. Through a twenty years'development, Chinese enterprise annuity has some development. However, compared with developed countries, it still has many problems, such as low-level and tardiness of development. The main factor that leads to the slow development of enterprise annuity, in the author's opinion, is lack of preferential policies in a long-term. Combined with international experience, development of the enterprise annuity is inseparable from the government's related preferential tax policies and guidance, and the former is the key factors of its development. The enterprise annuity in developed countries has a long history and is well developed. And its achievement shows that the rapid development has a close relationship with the preferential policies tax. In conclusion, the key condition to develop Chinese enterprise annuity is to construct a preferential tax system.Part II The development of China's enterprise annuityFirst of all, after defining enterprise annuity, what we should do is to put it into the whole framework of security system:the enterprise annuity is the second pillar of security system's three pillars, and it is necessary supplement to the basic endowment insurance; to make a further interpretation of the enterprise annuity according to its characteristics; Combined with the relevant principles of economics, this paper expounds the theory foundation of preferential taxation policies for enterprise annuity, namely to analyze the role of enterprise annuity from employee's perspective and employer's preference to welfare for their staff.Besides, from the aspect of the scale of development, the replacement rate, the coverage and the development of structure, etc, we analyze the current development of China's enterprise annuity and elaborate many problems, mainly in the backward system construction and the lack of tax incentives.Part III Necessity of Building Preferential Tax Policies for Enterprise AnnuityFirst of all, it defines the concept of enterprise annuity tax incentives fatherly. It is a national program taken in the tax system as incentives intending to encourage the establishment of enterprise annuity. The purpose of Government for the implementation of enterprise annuity tax incentives is to take the indirect regulation and to take advantage of role of the market to encourage development of non-mandatory corporate pension plans. From the positive perspective, it is benefit both directly and indirectly to implement the tax preferential policies for enterprise annuity. The direct benefit is the encouragement to the development of the enterprise annuity, the promotion of the efficiency, the improvement of social security system, and reduction of the government's responsibilities and burden; the indirect benefits mainly displays in fatherly improving Chinese capital formation mechanism, making savings change to investment, promoting the growth of economy. After that, It provides a more detailed exposition of enterprise annuity, which is a strong complement to the basic pension insurance. Implementing incentives for enterprise annuity have an positive influence on the balanced and healthy development of national economy. Appropriate tax incentives from government are the most important and most effective measures to fully mobilize the enterprise to establish the corporate pension plans actively.Part IV Basic Model of Tax incentives for Corporate Pension TaxFirstly, we provide a clear specification for the Standardized enterprise pension funds, which have to go through contributions, investment and treatment. Area of corporate taxation of pensions will be inevitably related to these three aspects, as a result, for these three possible areas, we will arrive at eight basic combinations of tax. For the four kinds of general form(TEE,EET,ETT,TTE). We come to a concise and clear description of their respective impact on the economy by a simple calculation.Secondly, we introduced the scale and speed of current development of enterprise annuity in western countries, which is inextricably linked with their Tax incentives. In order to encourage enterprises to establish a pension system, the government often gives different levels of tax incentives in contributions, investment and treatment. Meanwhile, they also make detailed provisions in the tax laws for corporate who is qualified to enjoy the tax benefits in order to achieve the desired socio-economic goals. Compared with the types of state tax revenue in the countries who have a better enterprise annuity development, we notice that the enterprise annuity revenue model in western countries is very similar, the majority is EET system. For example, the 401 (k) pension plans in the U.S. and the occupational pension plan in UK. In contrast, this model offers larger benefits. Although most countries adopt EET model, however, national and regional differences in the provisions of the enterprise annuity is very large. Government is required to set some limitation when formulate incentive policies on enterprise annuity tax in order to ensure the enterprise annuity tax policies work healthily and effectively and to prevent it becoming a tool of tax evasion. At the same time, government has to improve and perfect the legal system to guarantee its sustained and healthy development.At last, we analyze the tax incentives for enterprises in developed countries and come to a conclusion that our country should take EET annuity revenue model, combining the actual development of enterprise annuity in our country and the successful experience in developed countries.PartⅤUnderstanding and Exploration to Chinese Enterprise Annuity and Tax IncentivesFirstly, this paper discussed practice exploration of tax policies on enterprise annuity. Compared with the developed countries, Chinese tax system is lack of laws and regulations particularly for the enterprise annuity. And one of the main reasons leading to the shortage is that Chinese tax policies on enterprise annuity emerged in the 1990s, and it is still in exploration stage.Secondly, from the negative perspective, this paper analyzes the current problems on preferential tax policies for enterprise annuity, such as the lack of unified preferential tax policies, the shortage of fairness.Thirdly, the author puts forward some relevant measures according to the problems in preferential tax policies for enterprise annuity. However, all of the relevant measures should follows the requirements of Chinese harmonious operation, and ensure the fairness and efficiency preferential taxation policies for enterprise annuity. And the goal is to avoid serious losses of financial revenue, and to keep Chinese enterprise annuity development healthily and stably.PartⅥConclusionChina's enterprise annuity has developed and improved nearly 20 years and has begun to taken shape. However, the overall pace of development is relatively slow considering its development space and development potential, the reason is mainly the issue of tax incentives. In view of this, we should regulate the government's tax incentives from legislation by learning the successful experience from foreign countries based on the analysis of domestic situation and the consideration of the financial affordability so as to promote the rapid development of China's enterprise annuity. |
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