Research On Optimizing China's Tax Policies Of Group Insurance

In western countries, group insurance is often closely linked to employee benefit plans, and it is one of important parts of the social welfare system. Overseas successful experience has shown that group insurance has played the "stabilizer" role in protecting the basic living standards of workers. In the meantime, it has also been able to strengthen human resources management in enterprises and become an important component in the social security system of western countries. However, the development of China's group insurance has been quite slow, and even its retrogression has occurred. When Chinese insurance had just been resumed, group insurance accounted for about 80% in the entire Chinese insurance market. But in recent years, its development declined sharply. At the end of 2007, group insurance only accounted for 10.76% in life insurance business. Obviously, China's group insurance has been trapped into a quandary.At the same time, our country is facing a series of social problems, such as unsound social security system and worsening problem of an aging population, which have seriously hindered the building of a harmonious socialist society. While the sound development of the group insurance, particularly the group annuities, is conducive to the above-mentioned issues. Therefore, this article chose group insurance as the research object, and vigorously promoted the sound development of China's group insurance by optimizing the tax policies and related measures of China's group insurance so as to further promote the building of a harmonious socialist society in China.This paper consisted of five chapters, and the main contents were described as follows:Chapter One is Introduction. This chapter introduced the study background and the object of the paper, the literature review of group insurance development at home and abroad, listed the logical structure and research methods and finally summarized the innovations and shortcomings of this paper.Chapter Two is Status Quo of China's Group Insurance. First of all, this chapter provided an overview of group insurance including the definition, content, features and functions of group insurance. Secondly, this chapter analyzed the development status of China's group insurance. Finally, this chapter summarized internal factors and external factors that had impeded the development of group insurance in China.Chapter Three is International Comparison of Group Insurance Tax Policies. This chapter compared People's Republic of China with the United States, Britain and Japan in terms of group insurance tax policies and related measures and summed up the deficiencies of group insurance tax policies in our country.Chapter Four consisted of two parts, namely, the need for the development of China's group insurance and the feasibility of China's group insurance tax policies. The first part of the chapter elaborated the importance of developing group insurance in china. The second part analyzed group insurance's contribution to tax revenue and the appropriate tax mode of Chinese annuity plan. Upon this, this paper made a conclusion that the implementation of tax incentives to group insurance was feasible and EET mode should be adopted in China at different stages.Chapter Five is Proposals of Optimizing China's group insurance tax policies. On the basis of the previous four chapters, this chapter developed principles which the Chinese tax policies of group insurance should comply with. Then, this chapter put forward the recommendations of optimizing the taxation policies of China's group insurance and suggestions for improving the relevant supporting measures for group insurance in China.