Individual Income Expense Monitor

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:PartⅠIntroductionThis 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 Tax.\Firstly, perfect the legislation on the control of personal tax revenues.Secondly, undertake multiple technological means to strengthen the monitoring of personal finance.At last, strengthen the administration of tax collection.Part V Understanding and Exploration to Chinese Enterprise Annuity and Tax IncentivesFirstly, The innovation of methods:based on specific purpose and fair, the author introduced and analyzed a lot of literature; take advantage of relevant statistical data and the application of statistical analysis method to increase scientific reliability.Secondly, By the adoption of comparative analysis, the author analyzed the expense deduction and fairness of personal finance.Part VI ConclusionThere are also many shortages of this paper:the depth of the analysis is not quite enough, and the adoption of the language may be not very proper. Hope readers can give some criticize and suggestions.