Color your life insurance tax-free Insurance Tips

Category: Insurance tips Release Date: 2006-08-01

"This is the tax department in recent years, exempt from sales tax on insurance companies more focused once." The official said. Last year, the Ministry of Finance, State Administration of Taxation issued a "run on the insurance company for more than a one-year return of the personal insurance business exempt from sales tax notice", and eight insurance companies, 115 kinds of personal insurance products exempt from sales tax. This eight insurance companies, including Heng standards, Sun Life Everbright, the earth Insurance, Taikang Life Insurance, AIA Insurance, China Life Insurance, ING, Chinese and Italian life. For some tax-free insurance, as well as consumer understanding of this issue, the reporter interviews were conducted to the relevant departments.

â•¿â•¿insurance companies to reduce tax burden

Reporter asked coworkers, friends, aware of "notice" referred to "more than a one-year return of personal insurance," the answer I got is "not very clear." The reporter learned from an insurance practitioners Department received a clear explanation: the insurance according to whether the return is divided into two kinds of consumer and savings-based, consumer-based insurance products are generally less than one year enrollment period, by requiring the payment of business tax, medical insurance, accident insurance fall into this category; for more than a year of insurance products are generally have a return of, and savings similar to the required products according to the current policy of exemption from sales tax.

"Business tax and corporate income tax burden is the main insurance companies, the state issued some insurance products exempt from the provisions of sales tax to reduce the tax burden of enterprises." This person, for example, Mr. Zhao, 22 years old, purchased a 30 Paul-year amounted to 110,000 yuan of critical-illness insurance, the annual premium paid 2497 yuan. If you do not Chuxian 30 years later, Mr. Zhao cumulative premium payments 74.91 thousand yuan, while with 11 million refund amount, the difference between the 35.09 thousand yuan is the insurance company paid to Mr. Zhao's net income. "In accordance with the provisions of tax law, such businesses are exempt from business tax areas. If not for tax exemption, insurance companies, premium income is necessary to right this rate of pay in accordance with 5% sales tax."

"Overall, the international business tax levied on insurance rates low, not even sign. With the world level, the Chinese insurance industry in general is still at a very low level, therefore, for some products duty-free reflecting the state of insurance support of the industry, but also enhanced the ability of the insurance industry, self-development. "relevant person in charge said," In addition, the state for more than a one-year tax-free return of personal insurance, but also reflect national policy guidance on various types of insurance. For a number of policy strong, non-profit or low profit levels play an important role for social stability of insurance, such as life insurance, health insurance, etc. to develop a lower tax rate; while some of the profits is relatively rich, low rates of insurance paid to develop a higher tax rate. "

â•¿insured income "soared" â•?span>

"In the country for some personal insurance products exempt from sales tax under the premise that consumers choose products dividend is to get more benefits." The person said.

If the acts of buying insurance as a financial investment as part of the insurance proceeds from the sales tax, personal income tax, stamp duty and other tax exemptions. The source, for example, if an investor buys dividends, insurance, cash value can be insured in accordance with the return of 70% dividend, and the roll in accordance with the calculation of compound interest. The product sales income of 5% after-tax exemption, insurance companies, increased profits, investors will follow the return of income, "corresponding rise." Along with the investment of life insurance, 20% of dividend income exempt from personal income tax, get 23.5% of the tax-free income.

Clearly, the exemption of business tax and related tax incentives has led some investors to put more attention to the insurance products, which will promote the growth of insurance business? End the sale of life insurance products prices would not be reduced?

"Policy is good, but the actual insured consumer behavior incentives may be limited." Has eight years of a life insurance sales experience in the industry believe that consumers are the basic needs of life insurance is relatively stable, mainly serious illness and old-age demand, this demand will not be favorable tax policies and accelerated growth. At the same time, the insurance products is a function of social security, the special products which are not the same as the general merchandise to buy one get one free, buy more to send, profit-sharing to consumers, as long as the insurance regulatory authorities do not adjust the target interest rate, insurance companies have no right to change the premium standard.

â•¿the insurance industry into line with international practice â•¿Tax

Business tax preferential policies to enterprises has brought tangible benefits, but is far from alone can not quench their thirst for insurance companies.

The industry called for: to give insurance companies some tax incentives in order to avoid a loss in the investment business, increase the tax burden on enterprises; through preferential tax policy on the purchase of commercial insurance products, policyholders to give tax breaks for some investment, pension-type insurance Product implementation of deferred tax system, the proposed Chinese-foreign insurance companies as soon as possible a unified income tax rate and tax base; allowed resident individuals for the purchase of commercial health insurance, the expenses incurred before the payment of personal income tax deductions to encourage individuals into health insurance, savings, enhance health security level.

Experts point out that accession to WTO, in order to support the development of China's insurance industry to ensure fair competition with foreign insurance companies, we need to exist in China's insurance tax policy issues and give full consideration to the impact of China's insurance industry policy support system for a variety of factors, appropriate to expand tax-free coverage on timely and appropriately lower business tax rates and adjust and optimize the business tax base, adjust and optimize the reserve provision for income tax standard deductions, and establishing an international practice and in accordance with the insurance industry, industry-specific tax policy.