Analysis Of The Tax Policy And Operational Mechanism Of The Tax-deferred Pension Insurance

Look at the old-age security system of China:the replacement rate of the basic pension is keeping declining trend; the coverage of enterprise annuity is low; personal savings and pension insurance, as the third level of old-age security system, is developing slowly due to the absence of policy and weak consciousness of the people. However, aging of population, miniaturization of families and economic restructure are prompting the demand for old-age security to a sharp increase. The imbalance between the supply and demand highlights the urgency to reform the old-age security system, so we have enough reasons to develop the commercial pension insurance. As we know, personal tax-deferred pension insurance is in the position of the third level of the old-age insurance, which belongs to commercial pension insurance. It is distinctive because it refers to the policy factors of preferential tax, and which can play a guiding role for public consumption.As early as2008, relevant documents of the state council put forward to study the tax-deferred policies of pension insurance tax-deferred. In recent years, Tianjin, Shanghai and other cities have successively tried to promote the development of the personal tax-deferred pension insurance.While the attempt has not obtained much achievement, but also allows us to recognize the problems of tax incentives arrangements and the operating mechanism. Based on the study of these problems, research design of this article has formed as follow:firstly, I elaborate the basic theory of the personal tax-deferred pension insurance, then, through comparing the typical patterns of different countries, I find the problems for China to develop the tax-deferred pension insurance. Finally I provide the operational framework and preferential tax policies which adapt to China’s national conditions.This article can be divided to six parts:The first part is the introduction.This section elaborates the purpose and significance of the topic, and combing the research findings of domestic and overseas.In addition, the main research methods, the innovation and inadequacies of this article has been given here.The second part is the theoretical analysis of the personal tax-deferred pension insurance. As the basis of the entire article, this section elaborates the concept and characteristics of the individual tax-deferred pension insurance, and also refer to the development history of it.Then I analyzes the theoretical basis of the personal tax-deferred pension insurance.The conclusion is that tax-deferred pension insurance should choose EET mode.In the third part, I make the International Comparison during the modes of the United States, the United Kingdom and Germany.The enlightenments I got are as follow:firstly, we should locate the personal tax-deferred pension insurance definitely; secondly, we need develop the supporting laws and regulations; thirdly, we should give different insured different preferential tax; finally, to establish a unified insurance information platform to monitor the situation for personal insurance.The fourth part is an emphasis of this paper, the tax incentives of the personal tax-deferred pension insurance. In this part, I discuss the protection scope, protection level and preferential form of the personal tax-deferred pension insurance.And then,I calculate the appropriate preferential amount and estimate the fiscal costs to implement the new product(including enterprise annuity and individual tax-deferred pension insurance) in Shanghai. The conclusion is that, although the implementation of the personal tax-deferred pension insurance will bring government fiscal pressure, it is acceptable under the modest deficit fiscal policy.The fifth part is the other key point, which discusses the operation mechanism and management mode of the personal tax-deferred pension insurance. This section emphases on three aspects as follow:the risk analysis to implement the new product in China, the operating mechanism and related management research. The implementation of the personal tax-deferred pension insurance will face the risks which are from macroeconomic environment and technology, we should pay attention to each risk point when setting the operational mechanism and management model. The operating mechanism related to the mode of operation, the mode of financing and fund investments. The management of the personal tax-deferred pension insurance is mainly related to account management and tax collection management.Part six is to summarize the content and conclusions of the research involved in this paper.The main contributions of this paper:first, this research tries to build the development framework of personal tax-deferred pension insurance from a global perspective. Second, replacement rate and other related data are set to measure the threshold of tax preference, then the tax preference in the entire life cycle of who participates in the tax-deferred pension insurance are calculated. Finally, combined with the fiscal revenue and expenditure, I estimate the fiscal costs to discuss the feasibility of the tax-deferred pension insurance.Of course, this study cannot cover every aspect.Even if the research involved in this article is only on behalf of the author’s opinions, which need further improvement. For example, there is lack of data because personal tax-deferred pension insurance pilot has not yet started in Shanghai, it’s difficult to do empirical analysis. These deficiencies can be overcome through further research and analysis, I hope.