The Tax Policy Analysis On Tax-deferred Pension Insurance Of China

With the deepening degree of aging population, we must introduce the tax incentives as soon as possible to improve the tax policies of enterprise annuities and individual savings pension. International experience shows that tax incentives are the "engine" of tax-deferred pension insurance, playing the strong role in boosting its development. Implementation of preferential tax policies has become an important way to improve the pension replacement rate. At present, the studies on tax-deferred pension insurance in China are more concentrated on qualitative analysis and less focused on quantitative analysis.This paper of the tax-deferred pension insurance is divided into five parts: The first part is an introduction. The second part is the theoretical study, from a theoretical point of this section attempts to explain the basic concepts of tax-deferred pension insurance, characteristics, and its economic impact analysis on the macro and micro levels. The third part is the international reference for international corporate pension (occupational pension) plans to carry out a comparative analysis with personal experience of pension savings, and provide a reference for the reform of China’s tax policies. The fourth part is empirical to the relationship between the number of tax benefits and pension replacement rate parameters for the study to establish the insurance refined models. The fifth part is the suggestions on empirical basis.From two different clues: Theoretical Analysis and Empirical Analysis. The main points and conclusions of this paper are:Tax incentives are necessary to the tax-deferred pension insurance; Successful international experience is important for the exploration of China’s basic national conditions suitable for pension tax policy. The actual replacement rate of our tax-deferred pension insurance is low and lack of tax incentives degree. China’s enterprise annuity actual replacement rate is6.1%, the forecast of tax deferred pension insurance (pilot) in Shanghai is5.68%. By considering China’s basic national conditions and drawing on international experiences, we propose the following tax policy recommendations:At first, improved investment yield, extended the annuity accumulation time are important means to improve the tax-deferred pension replacement rate, and to reduce the financial burden. Second, improve the supplementary pension insurance coverage and keep tax-deferred pension insurance coordinated development with social insurance. Third, tax-deferred pension insurance should use the EET model. At last, we must strengthen the legal regulation system in the process.The main contribution of this paper is that build actuarial models to test the actual pension replacement rate of enterprise annuity and tax-deferred pension insurance in Shanghai province by using the theoretical multidisciplinary approach. After all, we forecast the rate of tax preferences to meet the target rate of pension replacement. This paper expands the breadth of pension tax policy research and provides theoretical reference for further the pilot of tax-deferred pension insurance.