Tax Policy Research On Encouraging The Development Of Tax Deferred Commercial Pension Insurance

On April 12,2018,the Ministry of Finance and the State Administration of Taxation announced the "Notice on the Pilot Project of Personal Tax Deferred Commercial Endowment Insurance",and the development of China's commercial pension insurance has taken a historic step.In this context,this paper evaluates the impact of tax-deferred commercial endowment insurance on personal welfare and the effect of tax incentives,and analyzes the shortcomings and shortcomings in China's current pilot policy.Based on the successful experience of extended-type commercial endowment insurance,it puts forward policy recommendations for the improvement of the pilot policy of tax-deferred commercial endowment insurance in China.Firstly,based on OLG model,this paper measures the changes in the welfare effects before and after the purchase of a tax-deferred commercial pension insurance.On this basis,two research scenarios are set up:one is the individual who only participates in the basic pension insurance,and the other is the case of individuals who participate in basic pension insurance and enterprise annuity to purchase tax-deferred commercial pension insurance,in order to analyze the situation under China's pension insurance system.The tax deferred commercial pension insurance affects the personal welfare utility of different insured persons.Secondly,this paper measures the tax incentives of the tax deferred commercial endowment insurance under different tax incentive models,and adopts the actuarial model for different ages.The pension replacement rate of the sex and income insured persons was measured to evaluate the effects and shortcomings of the tax deferred commercial pension insurance pilot policy.Finally,this paper puts forward policy recommendations for the improvement of China's tax deferred commercial pension insurance.The research in this paper finds that:First,the tax deferred commercial pension insurance has a positive effect on the improvement of personal welfare level.Lowering the personal contribution rate of basic pension insurance will reduce the personal welfare of individual tax deferred commercial pension insurance.The effect of reducing the corporate contribution rate will not have this effect.In addition,for individuals who participate in basic pension insurance and enterprise annuity at the same time,personal welfare is raised more than individuals who only participate in basic pension insurance;In the EET and TEE mode,the tax credit will increase with the increase of personal income,and the pension replacement rate will decrease with the increase of personal income;the TEE model will have more under the same conditions than the EET model.Compared with developed countries,China's existing tax incentives have relatively narrow coverage,and the pension insurance coverage is relatively low.The policy needs to be further refined and improved.Third,China should expand commercial pension insurance.Starting from the scope of insurance coverage and asset size,improving the level of protection,and ensuring the fairness of tax incentives.The innovation of this paper is mainly reflected in two aspects:research perspective innovation and research content expansion.In the innovation of research perspective,this paper studies policy from the perspective of development,and adds possible future policy development scenarios in the process of quantitative analysis;in the expansion of research content,it is different from existing research only through theoretical analysis.The policy research,this paper combines the generation overlapping model and the insurance actuarial model to quantitatively analyze the positioning of tax-deferred commercial endowment insurance in China's endowment insurance system and the effect of tax policy,which reduces the difference with the reality.At the same time,it provides an empirical basis for the development and improvement of China's tax deferred commercial pension insurance.