Article 23 of the Regulations on the Resettlement of Retired Soldiers gives tax incentives to retired soldiers engaged in self-employed businesses, gives small secured loans to support them, and gives financial discounts to those engaged in low-profit projects in accordance with state regulations. Except for industries restricted by the state, administrative fees for management, registration and license shall be exempted within 3 years from the date of first registration with the administrative department for industry and commerce.
For retired soldiers engaged in self-employment, within 3 years, 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 turn according to the limit of 8,000 yuan per household per year. The maximum quota standard can be increased by 20%, and the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government can determine specific quota standards within this scope according to the actual situation in the region, and report them to the Ministry of Finance and State Taxation Administration of The People's Republic of China for the record.
If the taxpayer's annual tax payable is lower than the above deduction limit, it shall be limited to the actual tax paid; If it is greater than the above deduction limit, it shall be limited to the above deduction limit. If the actual operating period of the taxpayer is less than one year, the tax reduction and exemption limit shall be converted according to the actual month. The conversion formula is: tax reduction and exemption limit = annual tax reduction and exemption limit ÷ 12× actual operating months.
In the month when taxpayers enjoy preferential tax policies, they should report to the competent tax authorities with the "China People's Liberation Army Veterans Certificate" or "China People's Liberation Army Veterans Certificate" and relevant information required by the tax authorities.
Extended data:
Self-employed demobilized military cadres, urban retired soldiers and their dependents shall be exempted from business tax within three years from the date of receiving the tax registration certificate.
Self-employment refers to the self-employment behavior of less than 7 people (including 7 people). Demobilized military cadres, retired soldiers in cities and towns and their dependents are engaged in self-employed businesses with more than 8 people (including 8 people). Regardless of whether their business licenses are marked as individual industrial and commercial households, demobilized military cadres and their dependents enjoy the same preferential business tax policies as newly-established enterprises and retired soldiers in cities and towns in accordance with the provisions of newly-established service enterprises.
Department of Veterans Affairs-Regulations on Resettlement of Retired Soldiers
State Taxation Administration of The People's Republic of China-Continue to implement relevant tax policies to support self-employed retired soldiers to start their own businesses.
Ministry of Finance-Preferential Business Tax Policies for Demobilized Military Cadres and Families of Retired Soldiers in Cities and Towns