2. The new enterprise income tax law stipulates that the wages paid to the disabled shall be deducted 1 times when the disabled are placed in their own employment.
Attachment: Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Preferential Tax Policies for Promoting Employment of Disabled Persons
Caishui [2007] No.92
All provinces, autonomous regions, municipalities directly under the central government, the finance departments (bureaus), the State Taxation Bureau, the local taxation bureau, and the Finance Bureau of Xinjiang Production and Construction Corps:
In order to give full play to the role of tax policy in promoting the employment of the disabled and further protect their vital interests, with the approval of the State Council and the consent of the Ministry of Civil Affairs and the China Disabled Persons' Federation, it is decided to uniformly implement a new preferential tax policy for promoting the employment of the disabled throughout the country. The relevant policies are hereby notified as follows:
First, the value-added tax and business tax policies for units that resettle the disabled
For units that place disabled people, the tax authorities shall implement the method of actually placing disabled people in units, and refund the value-added tax or reduce the business tax upon collection of the quota.
(1) The specific limit of the annual refundable value-added tax or reduced business tax for each disabled person actually placed shall be determined by the tax authorities at or above the county level according to six times of the minimum wage standard approved by the people's government at the provincial level (including autonomous regions, municipalities directly under the Central Government and cities with separate plans, the same below) applicable to the districts and counties where the unit is located, but the maximum shall not exceed 35,000 yuan per person per year.
(2) The competent tax authorities shall refund the value-added tax on a monthly basis. If the value-added tax paid this month is insufficient, it can be refunded in the balance of the value-added tax paid in the previous month after deducting the refunded value-added tax in this year (referring to the tax year, the same below). If it is still insufficient to be refunded, it can be carried forward to the next month within this year. The competent local tax authorities shall reduce the business tax on a monthly basis. If the business tax payable this month is insufficient, it can be carried forward to the next month of this year for reduction, but it shall not be refunded from the business tax paid in the previous month.
(3) The above-mentioned preferential VAT policies are only applicable to units whose income from producing and selling goods or providing processing, repair and replacement services accounts for 50% of the total income from VAT business and business tax business, but they are not applicable to the income from producing and selling consumption tax taxable goods, directly selling purchased goods (including wholesale and retail goods) and selling goods processed by entrusted units. The above-mentioned preferential business tax policies are only applicable to units that provide services (except advertising) with income accounting for 50% of the total value-added tax business and business tax business income, but they are not applicable to the income obtained by the above-mentioned units from providing advertising services and business tax taxable services that do not belong to services.
Units shall separately account for the sales income or business income of the above businesses that enjoy preferential tax policies and those that do not enjoy preferential tax policies. If they cannot be accounted for separately, they shall not enjoy the preferential policies of value-added tax or business tax stipulated in this notice.
(4) Units that concurrently engage in the business of enjoying preferential tax policies for value-added tax and business tax as stipulated in this Notice may choose to refund the value-added tax or reduce the business tax at their own discretion, and once they are selected, they shall not change it within one year.
(5) If both the preferential tax policies for promoting the employment of the disabled and the preferential tax policies for supporting employment such as laid-off and reemployment, demobilized cadres and dependents are applicable, the unit may choose to apply the most preferential policy, but it cannot be implemented cumulatively.
(6) The term "units" as mentioned in this article refers to enterprises (including sole proprietorship enterprises, partnerships and self-employed households), institutions, social organizations and private non-enterprise units that are registered in tax.
Second, the enterprise income tax policy for the placement of disabled units
(a) the actual wages paid by the unit to the disabled can be deducted according to the facts before the enterprise income tax, and can be deducted according to 100% of the actual wages paid to the disabled.
If the salary actually paid by the unit to the disabled is more than the taxable income of this year, the part that does not exceed the taxable income may be deducted, and the part that exceeds this year and subsequent years shall not be deducted. Loss-making units are not applicable to the above-mentioned method of adding wages to deduct taxable income.
Units can enjoy other preferential policies for enterprise income tax while implementing the above-mentioned method of deducting taxable income from wages.
(2) Income from VAT refund or business tax reduction obtained by the unit in accordance with Article 1 shall be exempted from enterprise income tax.
(3) The term "units" as mentioned in this article refers to enterprises (excluding sole proprietorship enterprises, partnerships and self-employed households), institutions, social organizations and private non-enterprise units that are registered in tax.
Iii. Value-added tax and business tax policies for individual employment of disabled persons
(1) According to Item (2) of Article 6 of the Provisional Regulations on Business Tax of the People's Republic of China (OrderNo. 136 of the State Council) and Article 26 of the Detailed Rules for the Implementation of the Provisional Regulations on Business Tax of the People's Republic of China [(93) Cai Fa Zi No.40], the services provided by individuals with disabilities to the society are exempted from business tax.
(2) According to the provisions of Article 3 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Adjusting the VAT Rate of Agricultural Products and Exempting Some Items from VAT [(94) Caishuizi No.004], the processing, repair and replacement services provided by individuals with disabilities are exempted from VAT.
Iv. Individual income tax policy for individual employment of disabled persons
According to Article 5 of the Individual Income Tax Law of the People's Republic of China (Presidential Decree No.44) and Article 16 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China (the State Council Decree No.0/42), the individual income tax on the labor income obtained by individuals with disabilities shall be reduced according to the reduction range and period stipulated by the people's government of provinces (excluding cities with separate plans). The specific income items are: income from wages and salaries, income from production and operation of individual industrial and commercial households, income from contracting and leasing operations of enterprises and institutions, income from remuneration for labor services, income from royalties.
Five, enjoy the preferential tax policy unit conditions
Units (including welfare enterprises, massage institutions for the blind, occupational therapy institutions and other units) that place disabled persons in employment may apply for enjoying the preferential tax policies stipulated in Articles 1 and 2 of this Notice after meeting the following conditions and being recognized by relevant departments:
(a) signed a labor contract or service agreement for more than one year (including one year) with each disabled person placed in accordance with the law, and each disabled person placed in the unit actually took up his post.
(two) the average monthly actual placement of disabled persons in the total number of employees in the unit should be higher than 25% (including 25%), and the actual placement of disabled persons is more than 10 (including 10).
The monthly average actual placement of disabled persons accounts for less than 25% (excluding 25%) but more than 1.5% (including 1.5%) of the total number of employees in the unit, and the number of disabled persons actually placed is more than 5 (including 5), which can enjoy the preferential enterprise income tax policy stipulated in Item (1) of Article 2 of this Notice, but not.
(3) For each disabled person who has been resettled, he has paid in full monthly social insurance such as basic old-age insurance, basic medical insurance, unemployment insurance and work-related injury insurance stipulated by the people's government of the district and county where the unit is located according to national policies.
(four) through banks and other financial institutions, each disabled person has actually paid a salary not lower than the minimum wage standard approved by the provincial people's government applicable to the district and county where the unit is located.
(five) have the basic facilities for the placement of the disabled.
Six, other relevant provisions
(a) the recognized units that meet the conditions of the above preferential tax policies shall calculate the average proportion of the actual placement of disabled persons in the total number of employees of the unit on a monthly basis. If the average proportion of this month does not meet the requirements, the corresponding tax incentives for this month shall be suspended. If the average proportion of accumulated three months in a year does not meet the requirements, the qualification of enjoying the corresponding preferential tax policies in the next year will be cancelled.
(II) Enterprises run by special education schools as stipulated in Item 7 of Article 1 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Education Tax Policy (Caishui [2004] No.39) refer to enterprises established to provide internship places for students in schools, which are funded by the school and managed by the school, and all the operating income belongs to the school. As long as the above enterprises meet the conditions of Item 2 of Article 5, they can enjoy Articles 1 and 1 of this notice. Such enterprises can include full-time students in special education schools who actually work in enterprises when calculating the number of disabled people, and also include the above-mentioned students when calculating the number of employees in the unit.
(3) In other areas except Liaoning, Dalian, Shanghai, Zhejiang, Ningbo, Hubei, Guangdong, Shenzhen, Chongqing and Shaanxi, any unit that has enjoyed the preferential tax policies of the original welfare enterprises before July/Kloc-0, 2007, which does not meet the conditions for paying social insurance as stipulated in Item (3) of Article 5 of this Notice, but meets other conditions as stipulated in Article 5 of this Notice. The above-mentioned units shall, in accordance with the relevant provisions, pay the relevant social insurance in full for the disabled as soon as possible. From 10/2007 1 day, the units that still do not meet the requirements shall stop implementing the preferential tax policies stipulated in Articles 1 and 2 of this Notice.
(4) The measures of annual examination shall be implemented for the conditions for the resettlement of disabled persons to enjoy preferential tax policies, and the specific measures of annual examination shall be formulated by the provincial tax department in conjunction with the civil affairs department at the same level and the Disabled Persons' Federation.
VII. Relevant definitions
(1) The "disabled persons" mentioned in this notice refer to those who are visually disabled, hearing disabled, speech disabled, physical disabled, intellectual disabled and mentally disabled as indicated in the People's Republic of China Disabled Persons Certificate and those who are holding the People's Republic of China Disabled Persons Certificate (1 to 8).
(2) The "individuals" mentioned in this Notice refer to natural persons.
(3) The term "employees in the unit" as mentioned in this notice refers to employees who have established labor relations with the unit and should sign labor contracts or service agreements according to law.
(4) The term "work-therapy institution" as mentioned in this Notice refers to a welfare production and resettlement unit that integrates employment and rehabilitation, and achieves the purpose of calming mood, relieving symptoms, improving skills and improving living conditions by organizing mentally disabled people to participate in appropriate productive labor and implementing rehabilitation treatment and training, including rehabilitation workshops attached to mental hospitals, work-therapy workshops attached to enterprises, and work-therapy stations set up by grass-roots governments and organizations.
VIII. Provisions on the Calculation of the Number of Disabled Persons
(1) Persons with mental disabilities are allowed to be included in the number of persons with disabilities and enjoy the preferential tax policies stipulated in Articles 1 and 2 of this Notice, which are limited to units suitable for the employment of mentally disabled persons such as industrial treatment institutions. The specific scope shall be stipulated by the provincial tax department in conjunction with the finance and civil affairs departments at the same level and the Disabled Persons' Federation.
(2) Persons with disabilities who do not meet the working age stipulated in the Labor Law of the People's Republic of China (Presidential Decree No.28) and other relevant regulations are not included in the resettlement ratio stipulated in Paragraph (2) of Article 5 of this Notice, the tax refund and reduction limit stipulated in Article 1 and the calculation of the additional deduction stipulated in Article 2.
Nine, units and individuals by signing a false labor contract or service agreement, forged or repeated use of the disabled card or disabled soldiers card, disabled people in name but not actually work, falsely reporting the proportion of disabled people's resettlement, failing to pay or underpay the required social insurance for the disabled, disguised to recover the paid wages from the disabled, etc., in addition to investigating the responsibility of the relevant units and personnel in accordance with laws, regulations and other relevant provisions, The tax reduction (refund) actually enjoyed in the year in which the above-mentioned illegal acts actually occurred shall be fully recovered and put into storage, and the qualification of enjoying the preferential tax policies stipulated in this notice shall be cancelled within three years from the year in which the above-mentioned illegal acts actually occurred.
Ten, the specific measures for the collection and management of the preferential tax policies stipulated in this notice shall be formulated separately by State Taxation Administration of The People's Republic of China in conjunction with the Ministry of Civil Affairs and the China Disabled Persons' Federation. The measures for the identification and management of the proportion of disabled persons and the basic facilities for the placement of disabled persons in welfare enterprises shall be formulated by the Ministry of Civil Affairs in consultation with the Ministry of Finance, State Taxation Administration of The People's Republic of China and China Disabled Persons' Federation, while the measures for the identification and management of the proportion of disabled persons and basic facilities for the placement of disabled persons in blind massage institutions, occupational therapy institutions and other units shall be formulated by China Disabled Persons' Federation in consultation with the Ministry of Finance, the Ministry of Civil Affairs and State Taxation Administration of The People's Republic of China.
XI. This Circular shall come into force on July 1 2007, but the provisions of Article 2 of this Circular on the application of preferential corporate income tax policies for foreign-invested enterprises shall come into force on July 1 month 1 2008. The Ministry of Finance, State Taxation Administration of The People's Republic of China's Notice on Some Preferential Policies for Enterprise Income Tax [(94) Caishuizi No.001], Item (9) of Article 1, the Ministry of Finance and State Taxation Administration of The People's Republic of China's Notice on Taxation of Welfare Enterprises and School-run Enterprises [(94) Caishuizi No.003], and State Taxation Administration of The People's Republic of China's Notice on Collection of Turnover Tax by Civil Welfare Enterprises. 155), Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Tax Policies of Welfare Enterprises (Caishuizi [2000] No.35), and Notice of the Ministry of Finance State Taxation Administration of The People's Republic of China on Adjusting and Perfecting the Pilot Work of Current Preferential Tax Policies for Welfare Enterprises (Caishui [2006]1KLOC-0//KLOC-0 Notice of State Taxation Administration of The People's Republic of China Ministry of Finance, Ministry of Civil Affairs and China Disabled Persons' Federation on Adjusting and Perfecting the Pilot Implementation Measures of the Current Preferential Tax Policies for Welfare Enterprises (Guo Shui Fa [2006] 1 2) and Notice of State Taxation Administration of The People's Republic of China Ministry of Finance on Further Improving the Pilot Work of Adjusting the Current Preferential Tax Policies for Welfare Enterprises (Cai Shui [2006]135) since 2007,
Twelve, local financial and tax departments at all levels should conscientiously implement the provisions of this notice, strengthen leadership, report to the local government in a timely manner, obtain the understanding and support of the government, and closely connect and communicate with civil affairs, disabled persons' federations and other departments. The tax authorities should take the lead in establishing a joint meeting system attended by the above-mentioned departments, and * * * will implement the policies stipulated in this notice. The financial and tax departments should cooperate with each other, and the provincial tax department should inform the provincial financial department of the tax reduction (refund) data and related information of the policies stipulated in this notice in a timely manner every six months.
Thirteen, all over the implementation of any problems, please report to the Ministry of Finance and State Taxation Administration of The People's Republic of China.
June 15th, 2007