Development Of The Insurance Industry: Encounter Tax Bottleneck

The thesis puts the insurance in the whole frame of the important components of the whole national economy to describe , from the financial affairs and actuarial angle, tries hard to analyse insurance's tax theoretically. It has analysed various kinds of problems that insurance development of our country must face such as actuary, investment, management ,etc. at first, and then has analyzed the relation of the insurance and tax revenue from quantitative relation, has compared the insurance tax revenue of our country with some typical methods in the world on this basis, and has pointed out that insurance's development is facing the bottleneck of the tax , which need being broken badly. It has put forward the plots that scientificly adjust to tax base and tax rate of such tax categories as business tax , income tax ,etc. rationally, and has done certain exploration to these plots in implementing concretly. Now I will make and explain as follows in the face of the main contents and views of the thesis:The first part of the thesis has pointed out that the insurance is an important component of the national economy, has enormous indispensable function on the social development, but the lever of insurance in our country is obviously lower than the average level in the world, should develop in a more cost-effective manner. With joining WTO, insurance's development has both challenge and opportunities. Insurance's development is affected greatly by tax policy, no matter from the return on net assets, financial lever effect, or promoting enterprise's value, and the tax revenue has formed the 'bottleneck' restrictions to the insurance.The second part of the thesis has analysed the tax system of the insurance of china in detail, and analysed every tax category, especially business tax and income tax, and has compared with some tax systems of typical countries and regions in the world. Then it has pointed out that there are shortcomings in tax rate and base for some tax categories which need transforming.The third part of the thesis has pointed out the five aspects of the shortcomings and problems of the tax system of insurance of our country, and the solutions havealso set about from these five respects mainly, proving the main point of the tax system reform of insurance of our country in detail. The main contents are: (1) The base of the tax is unreasonable. Premium income which is in debt in fact, should not be business tax base, to keep in line with the international practice classifying it as the income of insurance companies, and correct its irrationality at the same time, we should reject the recovery fund income from the tax base of the business tax , and the turnover that the insurance companies offer the customer should be deducted from the business tax, and define premium incomes according to the regulation of the accounting system of insurance enterprise strictly at the same time. In addition, the business tax imposed on life insurance agents' income should be exempted. In respect of the tax base of the income tax, the general capital reserve should be drawn in certain proportion, the principal of innovative products should be deducted pre-tax, and the capital reserve which is unsettled to pay an indemnity should be drawn by chain ladder law; in addition , as far as the cost expenses are concerned, they should be deducted according to the actual conditions of insurance ,or we raise the proportion of deducting factually to allow. (2). The tax rate is on the high side. The tax rate of the business tax can be reduced properly, which not only helps insurance enterprises develop, but also help again the re-insurance development. And the income tax rate also can be reduced properly. (3). The burden of taxation between Chinese-funded enterprises and overseas-funded enterprises of China is unfair. In tax rate, they are applicable to the income tax law of two sets of enterprises respectively, as a result, disparity is too big, which causes the burden of taxation of Chinese-funded insurance enterprises to be overweight. The suit...