Announcement issued by four departments: Key groups for entrepreneurship and employment will receive tax preferential limits | State Administration of Taxation | Entrepreneurship
Beijing, August 4th (Xinhua) - Recently, four departments including the Ministry of Finance, the State Administration of Taxation, the Ministry of Human Resources and Social Security, and the Ministry of Agriculture and Rural Affairs issued a notice on further supporting tax policies related to entrepreneurship and employment for key groups, further supporting their entrepreneurship and employment.
The Announcement points out that from January 1, 2023 to December 31, 2027, individuals who have been lifted out of poverty and hold "Employment and Entrepreneurship Certificate" or "Employment and Unemployment Registration Certificate" and engage in individual business operations shall deduct the actual value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge, and personal income tax that they should pay in the current year within a limit of 20000 yuan per household per year within three years from the month of registering for individual industrial and commercial households. The maximum deduction limit standard can be increased by 20%, and each province can determine the specific limit standard within this range based on the actual situation of the local area.
The above personnel specifically include four categories: poverty-stricken population included in the national poverty prevention monitoring and the promotion of rural revitalization information system, individuals registered as unemployed in public employment service institutions of human resources and social security departments for more than six months, registered unemployed individuals from zero employment families and families enjoying the minimum living security for urban residents within the working age, and college graduates within the graduation year.
Enterprises can attract key groups of personnel for employment, and those who meet the conditions can also enjoy tax incentives. According to the Announcement, from January 1, 2023 to December 31, 2027, if enterprises recruit poverty-stricken individuals, as well as individuals who have been unemployed for more than six months in public employment service institutions of the human resources and social security departments and hold the Employment and Entrepreneurship Certificate or Employment and Unemployment Registration Certificate, and sign labor contracts with them for a period of more than one year and pay social insurance premiums in accordance with the law, value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge, and enterprise income tax preferential treatment will be deducted in a fixed amount within three years based on the actual number of people recruited, starting from the month when the labor contract is signed and social insurance is paid. The deduction quota standard is 6000 yuan per person per year, with a maximum increase of 30%.
The Ministry of Finance, the State Administration of Taxation, and the Ministry of Veterans Affairs recently issued a notice on further supporting tax policies related to entrepreneurship and employment of self-employed veterans. From January 1, 2023 to December 31, 2027, for self-employed veterans engaged in individual business, starting from the month of self registration for individual businesses, the actual value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge, and personal income tax that should be paid in that year will be deducted in sequence based on a limit of 20000 yuan per household for three years. The maximum limit standard can be increased by 20%.