Circular on the Adjustment and Improvement of Tax Policies for Supporting Pioneering Business and the Employment of Retired Soldiers Seeking Employment on Their Own
Circular on the Adjustment and Improvement of Tax Policies for Supporting Pioneering Business and the Employment of Retired Soldiers Seeking Employment on Their Own
Circular on the Adjustment and Improvement of Tax Policies for Supporting Pioneering Business and the Employment of Retired Soldiers Seeking Employment on Their Own
Cai Shui [2014] No.42
April 29, 2014
The departments (bureaus) of finance, local offices of the State Administration of Taxation, local taxation bureaus and departments (bureaus) of civil affairs of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, the Financial Bureau of Xinjiang Production and Construction Corps and the Civil Affairs Department of Xinjiang Production and Construction Corps,
Since 2004, the State has provided supporting tax policies for urban retired soldiers seeking employment on their own, which significantly facilitate their pioneering business and employment. On October 29, 2011, the newly revised Military Service Law of the People's Republic of China and the Regulations on Placement of Retired Soldiers formulated for the first time were promulgated, which marked the official implementation of the reform on the placement of both urban and rural retired soldiers as well as a new era for the placement of retired soldiers. In order to implement the new requirements proposed by the Central Government for doing well in the placement of retired soldiers, the issues concerning the adjustment and improvement of tax policies for pioneering business and the employment are hereby notified as follows upon approval of the State Council:
Article 1 For the retired soldiers who are self-employed and engage in individual business, taxes including business tax, urban maintenance and construction tax, education surtax, local education surtax and individual income tax payable for the year shall be reduced in subsequence by up to CNY8,000 per household annually within three years. The limit standard can float upward by 20% in maximum, and the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government may determine the specific limit standard within the range based on the actual conditions in the areas, and file it to the Ministry of Finance and the State Administration of Taxation for record.
Where the taxes payable by the taxpayer are less than the aforesaid limit for deduction, the limit shall be the actual amount of taxes to be paid; where greater, the aforesaid limit for deduction shall apply.
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