China Will Implement New Preferential Tax Policies To Support And Promote Employment From Next Year.

The notice has been adjusted and improved based on the preferential tax policies for re employment of laid-off workers.

The first is to support independent entrepreneurship. On the basis of the tax preferential policies to promote the development of SMEs, the new preferential tax policies for employment mainly aim at individual operators and actively support individuals to start their own businesses.

The two is to expand the scope of personnel to enjoy the preferential tax policies for self starting businesses. Compared with the previous group of people who have decided to enjoy the preferential tax policies for self starting businesses according to the special group, the definition of the applicable objects of the new self starting business tax preferential policy is based on the record of over half a year's unemployment in public employment service institutions, namely, the expansion of laid-off workers and a small number of urban poor groups to the entire staff of the employment and unemployment registration management system.

The key groups such as laid-off workers, college graduates, migrant workers, employment difficulties and zero employment families, enjoying the minimum living security of urban residents, and registered unemployed persons in the working age of families are all covered by the new employment tax preferential policies.

At the same time, in order to support and encourage new graduates to start their own businesses, the university graduates in the year of graduation will also be included in the scope of tax preference policies for self starting businesses.

The three is to maintain the preferential policies of the existing policies, and continue to use the preferential policies of laid-off workers' re employment tax policies.

With regard to the self employment of the employment and unemployment registration certificate, the business tax, urban maintenance and construction tax, education fee surcharge and personal income tax shall be deducted in the next 3 years according to the limit of 8000 yuan per household per year.

For small business entities with processing properties in business enterprises, service enterprises, and labor and employment service enterprises, in the newly increased posts, those who hold the employment and unemployment registration certificate in the new year will sign a discount of business tax, urban maintenance and construction tax, education fee surcharge and enterprise income tax in 3 years according to the actual number of recruited people, with the signing of a labor contract for more than 1 years and the payment of social insurance premiums according to law.

The quota standard is 4000 yuan per person per year, and it can fluctuate by 20%. The specific quota standard is determined within the scope of the actual situation of the provinces, autonomous regions and municipalities directly under the central government according to the actual situation of the region.

The four is to further standardize the management of preferential tax policies. Taking the employment and unemployment registration certificate as the main basis for enjoying preferential policies, it embodies universal benefits on the enjoyment of objects, highlights the normalization in the management mode, and closely combines the functions of public employment services with tax collection and management, so as to adapt to the new situation and new requirements of the current employment work in China.

At the same time, by setting up industry restrictions, strengthening the management of employment unemployment registration certificate and the self employment certificate of university graduates, the operation and controllability of preferential policies have been further improved, so as to avoid loopholes in tax collection and administration.

The notice stipulates that the period for examination and approval of preferential tax policies will be from January 1, 2011 to December 31, 2013. The preferential tax policies will not continue until the expiry of 3 years in December 31, 2013. The preferential tax policies for reemployment of laid-off workers will continue to enjoy the expiration of 3 years in December 31, 2010. In order to ensure the smooth implementation of the preferential tax policies for employment, the circular also stipulates that the State Administration of Taxation, jointly with the Ministry of finance, the Ministry of human resources and social security and the Ministry of education, shall formulate and publish specific implementation measures.