Benjamin Franklin, a famous politician, famously said: In this world, only death and taxes cannot escape.

As Xiao Li who sells insurance, "tax" is also my major. Why? Because many people have a misunderstanding that life insurance can "avoid tax".

Let's start with the conclusion: in fact, there is no so-called absolute "tax avoidance", and all structures designed for tax avoidance are hooligans. Life insurance "tax avoidance" is no exception.

But the key point is after the turning point: what we call "tax avoidance" refers to the "package" planning of wealth protection, inheritance, tax saving or deferred payment within the scope permitted by law, taking advantage of the particularity of the legal relationship of insurance contracts and combining the characteristics of insurance legal tools.

To put it simply, we must have a correct attitude towards the issue of "tax" before we can find professional legal tools (such as insurance policies) to plan.

When it comes to tax planning, there are two taxes to be considered first: inheritance tax and income tax.

0 1 Legal basis of life insurance and inheritance tax

At present, inheritance tax has not been levied in Chinese mainland for many reasons, such as:

1, China people's private wealth began to accumulate after the reform and opening up, and rose sharply after 2000. Nobody had any money before. What should we levy?

Most rich people in China started their businesses in 1980s. Now that 30 years have passed, the age of the rich generation is concentrated in 50-70 years old, and it has not yet entered a period of massive inheritance.

3. The domestic property rights registration system and system have not been fully established, and the accounting basis is not mature, so it is temporarily impossible to levy.

But whether it will be levied in the future is a question that needs to be considered in advance. The more people with high personal wealth, the more they should deploy as soon as possible. After all, there are too many cases in the world where personal wealth has been greatly reduced or even inherited because of inheritance tax.

If inheritance tax is levied in the future, is it necessary to pay inheritance tax for domestic life insurance claims? Judging from the current provisions of the Insurance Law, there is no need to pay inheritance tax.

Judging from the "Provisional Regulations on Inheritance Tax (Draft)" (version 20 10) that has been circulating in China, Article 5 clearly stipulates that the personal insurance compensation shall not be included in the whole estate.

Although the "Interim Provisions" is not an official public text, it is not groundless, and its content has certain reference value. Life insurance compensation is not included in the inheritance, which should be the mainstream of legislation.

Legal basis of life insurance and income tax

In addition to inheritance tax, life insurance claims also face another major tax, that is, income tax. In China, according to the fifth paragraph of Article 4 of the Individual Income Tax Law, insurance compensation is exempt from income tax, which of course includes life insurance compensation.

In addition to payment, life insurance has many other forms of payment, such as annuity, pension security survival fund due, dividend, dividend accumulated interest, universal insurance and investment income of linked insurance.

Are these exempt from income tax? At present, China's tax law does not clearly stipulate, and in the actual implementation process, there is no clear stipulation on the payment, dividends and income of insurance annuities.

Universal life insurance and investment-linked insurance are different from ordinary insurance, with clear investment attributes, and also different from ordinary whole life insurance. In China, although there is no personal income tax on its income at present, there is some controversy.

We can refer to foreign cases in this regard. In foreign countries, only the cash value received will involve income tax.

For example, in the United States, universal life insurance needs to be included in the personal income of that year. Therefore, universal life insurance in the United States generally has the function of policy loan, and it uses loans instead of receiving cash value to avoid personal income tax.

it's over

It's a bit boring to write so much on it. Finally, I recommend you to read a gossip. You can use the keyword "Taiwan Province rich Cai Wanlin and Wang Yongqing pay inheritance tax".

They are also rich, but the amount of tax paid by these two people is very different, the difference is nearly10 billion.

This reminds me of a classic movie line: I only guessed the beginning, but I couldn't guess the end.

end

I wrote all the articles myself.

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