Research On The Preferential Tax Policy Of Private Pension In China

With the increase in life expectancy and the decrease in fertility rate,the aging situation in China is severe and deepening,which is a major challenge to the sustainable development of China’s elderly care security system.Against the backdrop of insufficient replacement rate of the first pillar of pension and limited coverage of the second pillar,China has strengthened the development of individual pension systems,promoted the construction of multi-level and multi pillar pension security systems,and improved the level of residents’ pension security.China launched pilot projects for deferred personal income tax commercial pension insurance in Shanghai,Fujian,and other places in 2018,but the tax incentives were limited and did not meet the expected level of participation.In 2022,on the basis of preliminary pilot projects,it was officially proposed to develop a personal pension system and determine specific details of tax preferential policies.However,differentiation was not reflected for residents of different income levels and age groups,and there is still room for further optimization of tax preferential policies.Therefore,the personal pension system needs to optimize tax preferential policies,design the system content reasonably,enhance residents’ participation and initiative,ensure their living standards after retirement,and improve the multi-level and multi-pillar pension insurance system to cope with the aging crisis.This article reviews the aging population situation and the current pension security system,and analyzes the practical conditions and challenges faced by the current individual pension system in formulating tax preferential policies.It is believed that residents have objective conditions to participate in the individual pension system,and the reform of tax preferential policies for enterprise pension provides preliminary experience for individual pension,The successive introduction of supporting policies has also provided institutional impetus for the optimization of personal pension tax preferential policies;But at the same time,there are still many problems such as unclear target groups of the system,low intensity of tax preferential policies,and limited number of beneficiaries.Secondly,a model was constructed to calculate the total tax incentives and substitution rate of individual pension in China under different tax incentive modes.Sensitivity analysis was conducted on the calculation results.It was found that high-income individuals were more suitable for tax exemption during the payment and receiving periods,while low-income individuals were more suitable for tax incentive modes such as tax exemption during the payment and receiving periods.Delayed retirement policies were adopted The impact of increasing the upper limit of payment and changes in tax rates during the collection period on different genders and income levels varies.Once again,Canada,the United States,Germany,and Japan are selected as typical countries for the development of personal pension.The analysis and summary of their pension system,personal pension tax preferential policies,and other supporting policies are conducted,drawing on the important experience of their pension system construction and personal pension development.Finally,optimization suggestions are proposed based on the calculation results and international experience.Firstly,it is necessary to increase the intensity of tax preferential policies,optimize the amount and tax rate of tax incentives,and explore the non taxation of investment income during the claim period;Secondly,promote flexible adjustment of tax preferential policies,establish a dynamic adjustment mechanism for payment limits,and connect the two and three pillar tax preferential policies;Once again,implement differentiated tax preferential policies,introduce the TEE tax preferential model,and set differentiated tax preferential ceilings;Finally,we will improve the relevant supporting systems for tax incentives,implement the personal pension account system,clarify regulatory responsibilities,and solidly promote personal pension tax incentives.