Comparison and Selection of the Favorable Tax Policy on Private Pension in China

In 2005,the regulator authorized the first group of financial institutions to sell and manage private pension plans in China,marking the beginning of the implementation stage for pension plans.However,some key issues of private pension plans such as contribution rules,investment administration,payment method,regulation and taxation remain unresolved and have become the bottleneck that severely hinders the development of the enterprise pension markets.The paper begins with the comparison and selection of the favorable pension policy and evaluates the tax expenditure of the state in terms of such indicators as the basic conditions of the rural and urban pension and the incremental amount of the enterprise pension to provide a theoretical rational for the state to adopt appropriate favorable pension polices to guide and promote the growth of the pension market.