The beginning of 2024 is still a continuation of last year's market sentiment, everyone has great uncertainty about the future, most of the family's asset allocation strategy is based on capital preservation, bank large deposit orders are difficult to find, and low-risk savings insurance products have also been welcomed by the market. Savings products have the characteristics of low risk and high certainty, and if you are extremely risk-averse, insurance products are a good tool, but it is still recommended that families should build their own product portfolio, and it is difficult for a single financial product to resist the long-term inflation rate.
In addition to locking in long-term interest rates, savings insurance products can also achieve pension goals, children's education goals, and wealth inheritance goals through the formation of product portfolios.
So can buying insurance avoid taxes?
We have 3 relationships with insurance: the purchase stage, the holding stage, and the termination stage.
First: purchase insurance
The purchase of insurance does not involve the payment of personal income tax, unlike buying a house and paying deed tax, buying a car requires paying vehicle purchase tax.
However, from January 1, 2022, the preferential policy of deferred tax will be implemented for personal pensions, and in the payment link, the payment of individuals to the personal pension fund account will be deducted from the comprehensive income or business income according to the annual limit standard of 12,000 yuan, and the tax incentives will be indirectly obtained.
It is worth noting thatThe premiums paid for the purchase of insurance cannot be ill-gotten gainsThe premium for the purchase of insurance must be legal after-tax income, and if the business operator holds a large amount of insurance policy at the current price in order to avoid debts, it can also be disposed of retroactively.
Second: Policy holding
The survival annuity received by the insured is not subject to gift tax and individual income tax.
In annuity insurance, the act of the insured, as the beneficiary of the living annuity, and the act of the insured obtaining the living annuity is an act of accepting a gift. Secondly, there is no gift tax and inheritance tax at this stage, so the survival annuity received by the insured will not face the payment of gift tax at present.
However, the personal pension account is calculated and paid at a separate rate of 3% in the receiving process.
Third: the termination of the insurance contract
As long as you clarify the type of tax related to the death benefit, you can determine whether you need to pay tax.
There are two types of taxes related to death insurance benefits: personal income tax and inheritance tax (which has not yet been collected).
Personal income tax
According to Article 4 of the Individual Income Tax Law, insurance compensation is exempt from individual income tax, so there is no need to pay individual income tax when receiving death insurance benefits.
Inheritance tax
If inheritance tax is levied in China in the future, whether inheritance tax will be paid when receiving death insurance benefits?It depends on whether the death benefit belongs to the insured's estate
According to the provisions of the Reply of the Supreme People's Court on Whether the Insurance Money Can Be Used as the Insured's EstateWhether or not the death benefit is included in the insured's estate depends on whether the insured has named a beneficiary。If a beneficiary is designated, the death benefit shall be payable to the beneficiary after the death of the insured.
Therefore, if the policy clearly specifies that the beneficiary of the death is your child, then the death benefit will not belong to the insured's estate, and even if estate tax is levied in the future, it will probably not have to be paid.
If no beneficiary is designated, the death benefit becomes the insured's estate, and the heirs are likely to pay the estate tax levied.
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