Circular of the Ministry of Finance and the State Administration of Taxation on Issues Concerning Relevant Tax Policies on the Re-employment of the Unemployed
Circular of the Ministry of Finance and the State Administration of Taxation on Issues Concerning Relevant Tax Policies on the Re-employment of the Unemployed
Circular of the Ministry of Finance and the State Administration of Taxation on Issues Concerning Relevant Tax Policies on the Re-employment of the Unemployed
Cai Shui [2002] No. 208
December 27, 2002
To the financial offices (bureaus), the national and local taxation bureaus of various provinces, autonomous regions, municipalities directly under the central government, and cities specifically designated in the state plan, and the financial bureau of Xinjiang Production and Construction Corps:
We hereby release related taxation policies for the re-employment of the unemployed upon the approval of the State Council according to the Circular of the State Council for the Unemployment Work (Zhong Fa [2002] No. 12) and with the purpose of speeding up the re-employment of the unemployed:
Article 1 Where number of the unemployed that are hired in the current year by the newly established service enterprises (excluding the advertisement industry, sauna, massage, internet bar and oxygen bar) exceeds 30% (inclusive) of the total amount of their employees, and they have signed the labor contracts with a time limit of more than 3 years, they shall be exempted from the business tax, the urban maintenance and construction tax, educational surtax and enterprise income tax within 3 years upon the recognition of the labor and social security authorities and the examination and approval of the taxation authorities.
Where number of the unemployed that are hired in the current year by the newly established service enterprises (excluding the advertisement industry, sauna, massage, internet bar and oxygen bar) fails to exceed 30% of the total amount of their employees, but they have signed the labor contracts with a time limit of more than 3 years, the enterprise income tax payable shall be deducted according to the deducting ratio within 3 years upon the recognition of the labor and social security authorities and the examination and approval of the taxation authorities. Deducting ratio = (Number of the unemployed that are newly employed by the enterprises in the current year ?total number of the enterprises' employees × 100%) ×2.
Article 2 Where number of the unemployed that are hired in the current year by the newly established commercial trade enterprises (excluding the commercial trade enterprises that are engaged in the wholesale, wholesale and retail, and other non-retail businesses) exceeds 30% (inclusive) of the total amount of their employees, and they have signed the labor contracts with a time limit of more than 3 years, they shall be exempted from the urban maintenance and construction tax, educational surtax and enterprise income tax within 3 years upon the recognition of the labor and social security authorities and the examination and approval of the taxation authorities.
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