Transition-oriented Study On The Tax Model Of China’s Occupational Pension

Occupational pension benefits much from the reform of the income securitysystem, which also play an important role in promoting the improvement of the socialsecurity system. After the “three pillars” and “multi-pillar” pension reform proposalstheory being proposed by the World Bank in1994and2005respectively, occupationalpension has been widely practiced in many countries and has achieved significantresults. China has also formed a multiple level system of endowment insurancesystem includes “three pillars”: personal savings, occupational pension and basicendowment insurance. Although the occupational pension has played a significantrole in addressing the aging population as the supplement of the basic endowmentinsurance, the heated debate still point at its average replacement rate, far less than1%.Scholars generally believe that the main cause of this is due to the lack of strongsupport from tax incentives and no established tax pattern of occupational pension.Facing the reality of tax mode of China’s occupational pension’s development,the dual requires of the theory of Maslow’s hierarchy of needs etc and the practice ofChina’s economic transition and occupational pension’s progress, this article proposedthe establishment of “partial TEE to EET” tax mode of transition-orientedoccupational pension, which also based on the experience of foreign tax mode of theoccupational pension. The article elaborates the main content of the tax mode oftransition-oriented occupational pension, and deeply analysis its costs and benefits inoperating through comparative analysis method.