A Study On The Mode Of Social Insurance Premium Collected By Tax

Since the foundation of People’s Republic of China, Chinese government has formed and developed a relatively sound social insurance system with Chinese characteristics by learning from foreign social security system.In the process, as an important part of the social insurance system, the tax collection of social insurance premium has an effect on the sustainable development of China’s social insurance system and the improvement of social security level. As the first regulatory document issued by the Stage Council of People’s Republic of China in 1999,Provisional Regulations on Collection and Payment of Social Insurance Premiums stipulates that social insurance premium collection agencies should be designated by provincial, autonomous regional and municipal people’s government and social insurance premiums shall be collected by the tax authorities as well as the social insurance agencies set up by the labor and social administrative departments in accordance with the regulations of the State Council(Hereinafter referred to as the social insurance agencies). Due to the variety of provinces, municipalities and autonomous regions, the local governments can choose what it considers as the most powerful tax collection department on a case-by- case basis. As a result, institutions that collect tax vary widely in various provinces and cities. Tax authorities and social insurance agencies also differ in functions when raising fund of social insurance as a collection agency. In the early 2000 s, apart from the implementation of tax collection,the tax authorities upgraded the collection efficiency by continuously strengthening the informationization of social insurance premium collection. Take Guangdong province for an instance, after nearly 10 years of levying social insurance premium by tax authorities on behalf of social insurance agencies, Guangzhou took the lead to explore the mode in which tax authorities take full responsibility to collect social insurance premium in 2009, which receives recognition by the community. However,by July 2011 when Social insurance formally took effect, nationwide, it’s still common that the tax authorities as well as the society insurance agencies implementparallel collection. The diversity of tax collection in different provinces seriously hampers the national coordination of social insurance premium. Moreover, the benefit entanglement between departments also affected the efficiency and service level to levy social insurance premium, which further restricts the adjustment and perfection of China’s social security system.Therefore, it’s an important guarantee of social security and stability in China to explore and perfect the collection and payment of social security mechanism,ensuring that institutions collect tax uniformly and efficiently under risk management and control. At the same time, how to clarify responsibilities between governments ‘departments and how to perfect the relevant laws and regulations has become major issues when it comes to improving the social insurance system in our country.Based on the empirical case in which Guangzhou local Taxation Bureau takes full responsibility to collect social insurance premium, the thesis integrates the use of principal-agent theory and public sector economics related theory to make a systematic analysis of the current situation, collection mechanisms and weakness of Guangzhou social insurance premium levy model. In the meantime, referring to the social insurance levy mechanism in developed countries like the United States, this paper makes proposals to carry out policies to enhance tax collection management of the social insurance premium...