Clarity Provided on Operational Issues Related to Tax Policies for Supporting and Promoting Entrepreneurship and Employment of Key Groups

Recently, four departments including the State Taxation Administration ("STA") have issued the Announcement on Specific Operational Issues Concerning the Implementation of Tax Policies Aimed at Supporting and Promoting Entrepreneurship and Employment of Key Groups (the "Announcement"), retrospectively effective from January 1, 2019.

The Announcement clarifies the methods for key groups engaging in privately-owned business and enterprises employing key groups to enjoy preferential tax policies. First, key groups engaging in the privately-owned business will be granted tax incentives. Second, enterprises that employ key groups will receive tax incentives. Among others, enterprises eligible for enjoying the preferential tax policy designed for the employment of key groups, may each file an application for this purpose with the local department of human resources and social security above the county level. Departments of human resources and social security will, after verification, clearly indicate the wording "Tax Policy for Enterprises Creating Jobs" on the Employment and Entrepreneurship Certificates held by key groups that manage to find jobs, and issue the Certification for Enterprises Employing Key Groups to qualified enterprises. Qualified enterprises may file tax returns on their own to receive tax incentives. Furthermore, the Announcement states that to enjoy preferential tax policies, enterprises will be required to retain relevant documents for future reference, instead of filing a record for this purpose as before.



(Source: http://www.chinatax.gov.cn/n810341/n810755/c4092058/content.html)

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