Study On The Optimization Of Preferential Policies For Tax-deferred Commercial Pension Insurance In China

With the improvement of medical technology and rapid development of social economy,the aging population in China is becoming more and more serious.The establishment of a comprehensive multi-level social security system can not only actively respond to the adverse effects of aging population,but also a social consensus.Since the reform and opening up,China's old-age security system has many years of reform,and a multi-level old-age security system is gradually formed.The first level has been realized from small to large,and has become the largest social insurance system in the world.The second level of enterprise(occupational)annuity has been in the process of improvement after more than ten years of development.The third level of commercial pension insurance development is relatively lagging.However,the old-age security system is not balanced.It is reflected in the rapid development of the first pillar,and has assumed almost all the responsibility for old-age care.In recent years,there have been problems such as a decline in the replacement rate and an increase in government financial subsidies.Enterprise(occupational)annuity coverage is still not wide,and scale expansion is weak.The tax-favor policy of commercial pension insurance has not been implemented nationwide,affecting the development of commercial pension insurance.In this context,in order to promote the construction of a multi-level pension insurance system,China has carried out long-term exploration of commercial pension insurance.On April 20,2018,the government issued ‘the Notice of the Individual Tax Deferred Commercial pension Insurance Pilot',which stipulates that since May 1,2018,the pilot of tax deferred commercial pension insurance will be implemented in Shanghai,Fujian Province(including Xiamen City)and Suzhou Industrial Park.The period is one year.Commercial pension insurance has great potential for development,and it is an important component of the old-age security system.It is also one of the effective ways to alleviate the basic old-age insurance payment pressure and provide sufficient sources of economic life for retirees after retirement.From the perspective of international experience,it is an inevitable choice to combine preferential tax policies with commercial pension insurance.Through tax incentives,it can promote the development of commercial pension insurance and stimulate the Enthusiasm of insured persons,and cause the positive externalities of society and the state.In order to improve the living standards of residents after retirement,they will actively respond to the problem of population aging.This article selects Shanghai relevant data as the research sample and taxdeferred commercial pension insurance as the research object Consider the difference of different income levels,gender and age groups on the basis of ensuring the fairness of the policy.Differentiate and optimize the commercial pension insurance tax policies,in order to make recommendations for the promotion of commercial pension insurance.This article first clarifies the theory related to commercial pension insurance and lays a theoretical foundation.Then analysis the tax incentives of the international individual pension plan,and concludes on the international experience and enlightenment.After that,through the construction of the actuarial model.Analyze the replacement rate and tax effect of Shanghai tax-deferred commercial pension insurance,measure the actual replacement rate of different income levels,age and gender,and conduct sensitivity analysis on the replacement rate.In addition,combine international experience and the results of the analysis put forward the idea of commercial pension insurance tax policies,and evaluate the feasibility of the proposal.Finally,draw conclusions and propose a tax-deferred commercial pension insurance policy optimization.The full article has six chapters.The main contents of each chapter are introduced below.This chapter firstly combs the research background and significance.Under the background of population aging,the status quo of China's economic development and the status quo of the old-age security system,it points out that it is important and necessary to develop commercial pension insurance.Through the research on the tax policy of commercial pension insurance for domestic and foreign scholars,the replacement rate is selected as the basis of the research,and the differentiation design of commercial endowment insurance tax policy is taken as the entry point,and then the research content and method of the full text are clarified.Finally,the innovations and shortcomings of the article are sorted out.The possible innovations of this paper include: First,using the empirical data of Shanghai to establish a more complete actuarial model,quantitative analysis of the implementation of tax policy.Second,Starting from the fairness,this article will focus on the differentiated design of tax policies.However,considering the time lag of the data and the unreality of the model,the research in this paper still has some shortcomings.The second chapter is a theoretical analysis of tax-deferred commercial pension insurance.This part elaborates on the life cycle theory closely related to commercial pension insurance,the multi-level pension security system theory,the tax effect and tax incentive model theory,and the theory of commercial pension insurance fairness.It is pointed out that commercial pension insurance is an important part of rationally arranging wealth and improving the old-age security system throughout the life cycle,and the development of commercial pension insurance is closely related to the tax effect and tax incentive model theory and policy fairness theory.The third chapter analyzes the development history and current situation of tax deferred commercial pension insurance in nation.This chapter analyzes the development process of foreign tax deferred commercial pension insurance,and finds that there are differences in tax preferential policies of foreign developed countries,but it has reference significance for the development of China's commercial pension insurance.The experience of the development of individual pension plans in western developed countries shows that the most extensive EET tax mode is adopted,that is,in the payment phase,the deduction of the proportion is combined with the deduction of the limit.The personal income tax is exempted at the investment stage,and the partial tax when receive payments.The EET tax mode can reduce the tax burden of the insured,stimulate the public's enthusiasm for insurance,and enable the public to obtain more adequate old-age security.Only by continuously improving the tax policy can we ensure that the tax-deferred commercial endowment insurance is implemented as soon as possible across the country,reducing the government's pension pressure.In addition,foreign experience shows that designing differentiated tax policies for vulnerable groups such as highage groups and low-income groups can improve the coverage of individual pension plans and reflect the fairness of the system.The fourth chapter is an empirical analysis of tax-deferred commercial pension insurance.Through the establishment of the actuarial model,this chapter empirically analyzes the effect of the pilot policy of the individual tax-deferred commercial pension insurance in Shanghai,measures the replacement rate and tax effect of the tax deferred commercial pension insurance,and explores the relationship of replacement rate and income level,the tax-optimized ratio(limit),investment yield and so on.The results show that,first of all,the replacement rate of the insured under the current pilot policy varies according to the income level,age,gender and investment return rate.The tax preferential policy has the largest tax effect on the middle income group,and the attraction of the high income group is relatively insufficient.Secondly,the taxation effect of the tax preferential policy on male insured persons is greater than that of females.Because of the small retirement age and the large average life expectancy,women are not adequately protected under current policies.Thirdly,when tax preferential limit is between 1000-1200 Yuan,the tax cost brought by the implementation of the policy is within the government's tolerable range.When the tax preferential limit exceeds 1500,the government's fiscal revenue fluctuates greatly.In addition,the return on investment has a greater impact on the replacement rate of commercial pension insurance.The higher the return on investment,the greater the benefits of the insured.Therefore,the government can relax under the premise of monitoring the safety of commercial pension funds to increase the income of commercial pension insurance investment.The fifth chapter optimizes the design and feasibility study of preferential policies for individual tax-deferred commercial pension insurance.The core idea of this part is to propose a broader and fairness commercial pension insurance tax preferential policy concept based on foreign experience and domestic actual situation.The preferential policies include tax preferential and government subsidy policies,and from the government,the insurance company and the insured person conducted feasibility assessments.The results are as follows: the tax preferential ratio(limit)is dynamically adjusted according to the inflation rate,and increase the limit for high-age groups and differentiation of financial subsidies for low-income groups.It not only reflects fairness,but also feasibility of the government and the insurance company and he insured.Based on the level of the insured,preferential policies can increase their replacement rate and personal welfare.Based on the insurance company level,preferential policies can bring about the growth of premium income,which is conducive to the steady development of insurance companies and even the entire insurance industry.Based on the government level,under the combined effect of individual tax losses,financial subsidies and corporate income tax compensation,the government's fiscal losses account for less than 3% of fiscal revenue,and the impact on the government is limited.The sixth chapter is conclusions and recommendations.This chapter is the conclusion of the study and recommendations for the promotion of tax-deferred commercial pension insurance.First,from a theoretical perspective,it is necessary to have a tax-deferred commercial pension insurance tax preferential policy with social equity.Second,from the empirical results of Shanghai,the replacement rate of commercial pension insurance under the pilot policy is low.According to international experience and empirical results,the tax-proportion ratio(limit)is adjusted,such as provide financial subsidies for low-income groups,raise the limit of high-age groups can increase the replacement rate.Under the tax incentives,the average replacement rate for men aged 25-50 is about 10.00%,and the average replacement rate for women aged 25-45 is about 7.52%.The replacement rate has improved and is close to the target replacement rate of 10%.Under the financial subsidy policy,the average replacement rate for men aged 25-50 is 9.32%,and the average replacement rate for women aged 25-45 is 8.54%,which is very close to the target replacement rate.Third,the tax-deferred commercial pension insurance preferential policy envisages the feasibility of government,individual and insurance companies.After that,this part combines the experience and enlightenment of foreign individual pension tax policy and the empirical analysis conclusions,and puts forward some suggestions on the dynamic adjustment of taxation and the differential design of taxation preferential policies at different ages and income levels.As far as China's current national conditions are concerned,it is imperative to develop a tax-deferred commercial pension insurance.The tax-optimal policy to promote the development of tax-deferred commercial pension insurance should be based on foreign experience and combined with China's specific national conditions.Tax incentives should be reasonably formulated,differentiated tax policies should be formulated for different groups,financial subsidies should be given to vulnerable groups or tax credits should be increased,investment rates for commercial pension insurance should be increased,and tax supervision should be strengthened.At the same time,relevant laws and regulations should be improved,and the promotion of commercial pension insurance should be intensified to promote the implementation of tax-deferred commercial pension insurance.