Tax credit policy for retired soldiers

I. Pre-tax deduction for self-employed retired soldiers

Subject of enjoyment

Self-employed retired soldiers

Preferential content

Self-employed retired soldiers engaged in self-employment, within three years (36 months, the same below) from the month of registration of individual industrial and commercial households, the actual value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge and personal income tax should be deducted according to the limit of 12000 yuan per household per year, and the maximum standard can be raised by 20%.

skill

1. Self-employed retired soldiers refer to retired soldiers who have been discharged from active service in accordance with the Regulations on the Resettlement of Retired Soldiers (Order No.608 of the State Council Central Military Commission) and have been resettled through self-employment.

2. If the taxpayer's annual tax payable is lower than the above-mentioned deduction limit, the tax reduction or exemption shall be limited to the tax actually paid; If it is greater than the above deduction limit, it shall be limited to the above deduction limit.

3. The tax basis of urban maintenance and construction tax, education surcharge and local education surcharge is the value-added tax that should be paid before enjoying this preferential tax policy.

4. Only those who have been registered as individual industrial and commercial households and engaged in self-employment can enjoy the quota discount.

5. There is no limit to the business scope of self-employment.

6. A preferential subject can only enjoy 3 years.

Policy basis

Notice of State Taxation Administration of The People's Republic of China Veterans Department of the Ministry of Finance on Relevant Tax Policies for Further Supporting Self-employed Retired Soldiers' Entrepreneurship and Employment (Caishui [2019] No.21)

Two, to absorb the self-employed retired soldiers employment tax deduction

Subject of enjoyment

Enterprises that employ self-employed retired soldiers and sign labor contracts with them for more than 1 year and pay social insurance premiums according to law.

Preferential content

Recruiting self-employed retired soldiers, signing a labor contract with a term of 1 year or more and paying social insurance premiums according to law, starting from the month when the labor contract is signed and social insurance is paid, the value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge and enterprise income tax concessions will be deducted in turn according to the actual number of recruits within three years. The quota standard is 6000 yuan per person per year, with a maximum floating rate of 50%.

skill

1. Self-employed retired soldiers refer to retired soldiers who have been discharged from active service in accordance with the Regulations on the Resettlement of Retired Soldiers (Order No.608 of the State Council Central Military Commission) and have been resettled through self-employment.

2. Enterprises in the above policies refer to enterprises and other units that belong to VAT taxpayers or enterprise income tax taxpayers.

3. Enterprises sign labor contracts with retired soldiers who have been employed independently 1 year or more and pay social insurance premiums according to law.

4. The enterprise shall calculate the total amount of enterprise tax reduction and exemption according to the number of employees and the signing time of the labor contract, and deduct the value-added tax, urban maintenance and construction tax, education surcharge and local education surcharge from the total amount of tax reduction and exemption every month. If the actual value-added tax, urban maintenance and construction tax, education surcharge and local education surcharge paid by the enterprise are lower than the total amount of tax reduction and exemption, they shall be limited to the actual value-added tax, urban maintenance and construction tax, education surcharge and local education surcharge; If the actual value-added tax, urban maintenance and construction tax, education surcharge and local education surcharge are greater than the total amount of tax reduction or exemption, they shall be limited to the total amount of tax reduction or exemption. At the end of the tax year, if the deduction cannot be completed in that year, it will not be carried forward to the next year.

5. The tax basis of urban maintenance and construction tax, education surcharge and local education surcharge is the value-added tax that should be paid before enjoying this preferential tax policy.

6. The period for each self-employed retired soldier to enjoy tax incentives is 3 years.

Policy basis

Notice of State Taxation Administration of The People's Republic of China Veterans Department of the Ministry of Finance on Relevant Tax Policies for Further Supporting Self-employed Retired Soldiers' Entrepreneurship and Employment (Caishui [2019] No.21)

Three, self-employed demobilized military cadres shall be exempted from value-added tax and personal income tax.

Subject of enjoyment

Self-employed and self-employed demobilized military cadres engaged in self-employment

Preferential content

Self-employed demobilized military cadres engaged in self-employment shall be exempted from value-added tax and personal income tax within 3 years from the date of receiving the tax registration certificate.

skill

1. Demobilized military cadres who choose their own jobs must hold demobilization certificates issued by troops at or above the division level.

2. A preferential subject can only enjoy 3 years.

Policy basis

Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Tax Policy Issues Concerning Self-employment of Demobilized Military Cadres (Caishui [2003] No.26)

Item (40) of Article 1 of Annex 3 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Comprehensively Promoting the Pilot Project of Changing Business Tax to VAT (Caishui [2016] No.36).

Four, the placement of self-employed demobilized military cadres employment enterprises shall be exempted from value-added tax and enterprise income tax.

Subject of enjoyment

Newly-established enterprises for self-employment of demobilized military cadres.

Preferential content

Newly-established enterprises for self-employment of demobilized military cadres shall be exempted from value-added tax and enterprise income tax for three years from the date of receiving the tax registration certificate.

skill

1. Resettlement of demobilized military cadres who choose their own jobs accounts for more than 60% (inclusive) of the total number of enterprises.

2 demobilized military cadres must hold certificates issued by troops at or above the division level.

3. A preferential subject can only enjoy 3 years.