Tax Break Offered to Encourage Employment
To further encourage employment during these economic slowdown in China, those planning to start new businesses and those hiring the jobless will be granted tax breaks by the Chinese Central Government. According to the Ministry of Finance, businesses that are established by registered unemployed workers will also be allowed a maximum annual tax reduction of 9,600 yuan.
New graduates that creates new businesses, and those who have been out of work for more than six months and living on government aid and residents coming from zero income families are also qualified for the new tax policy. Companies that hire residents who are jobless for more than a year will be granted a annual reduction of 5,200 yuan for every job opportunity.
The tax policy is just a renewal of a previous pro employment measure that recently expired last year. The new tax policy is issued with a wider coverage and no restrictions on industries and simplified rules on administrative procedures and the new policy will remain in effect until December 2016.