East China’s Jiangsu province will release preferential policies for the needy and demobilized soldiers to get employed and start up businesses, according to a circular issued by the provincial department of finance recently.
Jiangsu will give these people greater tax incentives for business startup and employment during the period between January 1 this year and December 31, 2021.
The needy people refer to the unemployed, college graduates and those under the basic allowance level.
On the basis of national standards, the adjusted deductions and quotas are increased by 50% compared to the previous ones. If the needy people and the demobilized soldiers are engaged in self-employed businesses, the tax on the value-added tax and education surcharges payable in the current year shall be deducted from the annual limit of 14,400 yuan per household within 3 years from the date of registration for self-employed businesses.
Enterprises that hire needy people and the demobilized soldiers shall have their value-added tax and education surcharge deducted from the annual fixed-rate of 7,800 yuan and 9,000 yuan per year since the first month when the labor contract was signed for more than one year and social insurance is paid.
