Circular of the Ministry of Finance and the State Administration of Taxation on the Preferential Tax Policies for Facilitating the Employment of the Disabled People
Circular of the Ministry of Finance and the State Administration of Taxation on the Preferential Tax Policies for Facilitating the Employment of the Disabled People
Circular of the Ministry of Finance and the State Administration of Taxation on the Preferential Tax Policies for Facilitating the Employment of the Disabled People
Cai Shui [2007] No. 92
June 15, 2007
The financial departments (bureaus), the Offices of the State Administration of Taxation and local taxation bureaus of all 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 Corp.,
With a view to giving better play to tax policies in facilitating the employment of the disabled people, further safeguarding their vital interests, the Ministry of Finance and the State Administration of Taxation decide, upon approval of the State Council and consent of the Ministry of Civil Affairs and China Disabled Person's Federation, to implement, in a unified manner, the new preferential tax policies across the country to facilitate the employment of the disabled people. Relevant policies are hereby notified as follows:
I. Policies on value-added tax and business tax for units settling the disabled people
As for the units settling the disabled people, the tax authorities shall, according to the actual number of the disabled people settled, refund, with limited amount, the value-added tax upon collection or reduce the business tax.
1. The specific limited amount of the annual value-added tax refunded or business tax reduced for each disabled people actually settled shall be calculated and determined by the tax authorities at or above county level by 6 times of the minimum wages standard approved by the people's government at provincial level (including autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, hereinafter the same) that is applicable to the area and county of the locality of the unit (including county-level city and town, hereinafter the same) , and the maximum amount shall not exceed RMB 35,000 per person each year.
2. The competent office of the State Administration of Taxation shall refund the value-added tax on a monthly basis and where the amount of the value-added tax paid in the current month is insufficient for refund, it shall be refunded from the balance of the value-added tax paid in the previous months within the current year (referred to as tax payment year, hereinafter the same) after deduction of value-added tax refunded; where the amount is still insufficient, it shall be carried forward to the subsequent months within the current year. The competent local tax authorities shall reduce the business tax on a monthly basis and where the amount of the business tax paid in the current month is insufficient for reduction, it shall be carried forward to the subsequent months within the current year instead of being refunded from the business tax paid in the previous months.
3. The preferential policies on value-added tax above shall be only applicable to the units whose revenue generated from manufacture and sale of goods or provision of processing, repairs and replacement services accounts for 50% of the total revenue of the business subject to value-added tax and business tax, instead of the revenue gained by such units from manufacture and sale of goods subject to consumption tax, direct sale of outsourced goods (including wholesale and retail of commodity) and sale of goods delegated to other units for processing. The preferential policies on business tax above shall be only applicable to the units whose revenue generated from provision of "service industry" tax items (excluding advertising industry) accounts for 50% of the total revenue of the business subject to value-added tax and business tax, instead of the revenue gained by such units from provision of advertising industry labor service and labor service other than subject to business tax under "service industry" tax items.
The units shall, in a separate manner, account for the sales revenue or business revenue from the above-said business entitled to the preferential tax policies and those not entitled to the preferential tax policies. The units failing to carry out separate accounting shall not enjoy the preferential tax policies as specified in this Circular.
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