Research On The Development Strategy Of Tax Deferred Pension Insurance In China

In face of the serious issue of supporting the old people, the current old-age security system in our country is still under many challenges, such as low rate of pension replacement, substantial gaps under the pay-as-you-go system, limited coverage of the enterprise annuity and uneven development to name just a few. In response to such reality, the Chinese government has proposed a new pension security system which is co-constructed by basic social security insurance, employee supplementary endowment insurance and staff individual endowment insurance. Belonging to the category of commercial pension insurance, the income tax-deferred pension can stimulate the public to be involved in the commercial pension insurance by providing them with favorable tax policies,which therefore enhances the development of the third pillar in the pension security system.Nevertheless, the proposal of a nationwide income tax-deferred pension is still under discussion due to such problems as inadequate research time,insufficient practice and relevant statistics. Under such a context, this paper set sights to research on the topic of "A study on the development strategy of income tax-deferred pension in China"in the hope of making contributions to the study of this area.In this paper, the author firstly makes introductions to the definition, features,operating environment and taxation models of the income tax-deferred insurance after consulting the academic researches and practical cases in this field both home and abroad. Then, under the guidance of the reality in the pilot places and some foreign experience, the author lists five major issues that need to be conquered in the process of implementing the income tax-deferred insurance in our country. To be exact,they are the out-flow of state assets, constraints on the fiscal and taxation system, the fund income, the justice and the regulatory system. In light of the methods of qualitative and quantitative analysis,a feasibility research will be conducted in terms of the 5 aspects- policies, taxation model, fiscal influence, income analysis and the willingness to participate. It is concluded that it is feasible to promote this type of insurance in China. At last,in response to these five problems, advice on the supporting policies will be given from the national perspective which demonstrate the supportive attitude of promoting the income tax-deferred income in China.