Experts And Industry Say That The Tax Policy For Occupational Pension Should Be Clear.

At present, China's enterprise annuity market has started, but there are still some unclear and unreasonable aspects about the tax policy of enterprise annuity.

In this regard, the reporter interviewed the experts and the industry.

Liu Jiade, vice president of China Life Insurance Company, made clear at a meeting that the following three aspects of the tax are not clear: first, the pre tax deduction standard of the enterprise income tax is not standard enough.

Although the state clearly specified that 4% of the contribution within the enterprise can be paid from the cost, in practice, there are different standards in different places, which are quite different and not standardized. Two, the tax treatment of annuity in the capital utilization link needs to be clarified. Three, the personal income tax in the payment link needs to be perfected, and the necessity and feasibility of the delayed tax payment mode should be actively studied.

Guo Jinlong, director of the Macroeconomic Research Office of the Institute of finance of the Chinese Academy of Social Sciences, said that the state should encourage the development of enterprises' supplementary pension insurance and personal savings endowment insurance through policy support, and form a benign mechanism for symbiotic and interactive development of social insurance and commercial insurance. In addition to giving proper tax preferential policies to all old-age insurance systems that meet certain standards and providing for the aged, encourage and guide enterprises and individuals to establish and purchase commercial endowment insurance schemes to meet diversified demands for old-age security, we should, in the design of the endowment insurance system, act in a scientific, safe and simple principle, minimize the cost of the system operation, and promote the rapid and healthy development of the commercial pension insurance market, such as enterprise annuity and group pension insurance.

But Dr. Zhu Junsheng of Capital University of Economics and Business is worried that on the one hand, from the perspective of social equity, it is inappropriate to fully implement the tax preferential policy and raise the tax standard.

On the other hand, the implementation of tax incentives for enterprise annuity will bring about immediate loss of financial revenue, and the finance and taxation departments will have a lot of concerns.

EET (tax collection only at the receiving stage) will bring immediate financial pressure to the government, so this mode of taxation can hardly be implemented in countries with poor financial conditions.

From the international perspective, New Zealand abandoned the EET model in 1990 and switched to the TTE (tax exemption) mode. Its real purpose is to make the tax revenue ahead of schedule in order to make up for the present fiscal deficit.

Zhu Junsheng suggested that we should strive for an appropriate and flexible tax preference policy.

At this stage, it is not very practical to expect the immediate implementation of the EET tax mode. We can consider implementing the TEE (tax payment stage) and other tax modes. This will not cause a big impact on the immediate revenue, and can be easily accepted by the finance and taxation departments and even the central government. It will also help the participants of the annuity scheme enjoy some tax deferral of the investment income.

This may be a very pragmatic choice at the moment.

Zhu Junsheng suggested that in order to give full play to the guiding role of tax policy and maximize the market operation of enterprise annuity, the tax benefit policy can be flexible.

Conditional exemption can be granted to the investment income of enterprise annuity, that is, the exemption of the tax exemption for the investment income of the enterprise annuity fund. For example, the short-term investment income of the investment period not reaching a certain period (such as less than 30 trading days) should be taxed to restrain the short-term profit seeking behavior of the enterprise annuity.

Tax exemption for long term investment income of enterprise annuity is beneficial to the accumulation of enterprise annuity fund and rational institutional investors.

Since the implementation of the EET tax system reform is a systematic project, Liu Jiade proposed that the finance and taxation department should improve the personal income tax at the current payment stage before the delayed tax mode has been implemented.

At present, the biggest problem in practice is the tax rate applied by enterprises to pay annuities for retirees.

According to the relevant provisions of the personal income tax, personal income tax should be paid in the payment section, whether it is the personal payment part or the unit payment portion.

Due to historical reasons, enterprises, especially large state-owned enterprises, need to make up a higher amount of payments for the nearby retirees when establishing enterprise annuity. If they are in accordance with the existing tax regulations, they will have a high tax rate, so that personal benefits will greatly reduce the benefits of annuity. If the enterprise bears, it will have a great impact on the interest rate of enterprises.

He suggested that the tax law be clear about this and apply a relatively preferential tax rate.