HOW NEW LABOR PENSION ACT AFFECT TAX REVENUE OF TAIWAN

• Main Authors: Huang-Pin Huang, 黃皇賓
• Other Authors: 作者未提供
• Format: Others
• Language: zh-TW
• Published: 2006
• Online Access: http://ndltd.ncl.edu.tw/handle/6x48h7

碩士 === 銘傳大學 === 風險管理與保險學系碩士在職專班 === 94 === The Pension system which impact millions of workers in Taiwan has been revised from The Labor Standard Law to New Pension Act. The New Pension Act treat workers’contributions as tax deferred income and will accordingly reduce tax revenue while the Labor Standard Law allow huge tax deductibles for benefits from pension. This paper aims to study how the old system and new pension system affect tax revenue of Taiwan. Firstfold, the paper states the tax treatment of the States, including contribution phase, accumulation phase and liquidation phase. Then there are parallel comparisons of the systems between Taiwan and the States, trying to pinpoint the development experiences that Taiwan can learn from the States. Secondfold, the paper aims to analyze the impact on tax due to pension system change. Regression analysis is applied to derive the projected population of participants in Labor Insurance, retirees from Labor Insurance and retirees from New Pension Act. The annual contribution amounts and deduction amount are then calculated using annuity factors and present value to construct the tax revenues under different systems. The paper concludes with suggestions of future revise in relevant regulations.