商业养老保险(shāngyè yǎnglǎo bǎoxiǎn): Commercial endowment insurance
In April five departments, including the Ministry of Finance and the China Banking and Insurance Regulatory Commission, released an announcement that China will launch a pilot program of tax-deferred commercial endowment insurance in Shanghai, Fujian province and the Suzhou Industrial Park. On May 7, the China Banking and Insurance Regulatory Commission released a guidance on the development of the tax-deferred commercial endowment insurance, which clearly stipulated the principle, payment method and earning types of tax-deferred commercial endowment insurance.
The new product will entitle Chinese consumers of commercial endowment policies to a deduction from their taxable income. This will help ease people's tax burden.
As China's society is aging, support for the elderly has become an issue of public concern. International practice shows that the multi-level pension system, which includes elderly support for families, the public pension system, occupational and enterprise annuities as well as commercial endowment insurance, are necessary to cope with the aging population challenge.
Tax-deferred endowment insurance with favorable tax cut policy aims to encourage commercial endowment insurance in China.