State Taxation Administration of The People's Republic of China Ministry of Civil Affairs China Disabled Persons' Federation

Notice on Measures for the Collection and Management of Preferential Tax Policies for Promoting the Employment of Disabled Persons

Guo Shui Fa [2117] No.67

State Taxation Bureau, Local Taxation Bureau and Civil Affairs Bureau (bureau) of all provinces, autonomous regions, municipalities directly under the Central Government and cities with separate plans, Disabled Persons' Federation:

According to the relevant provisions of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Preferential Tax Policies for Promoting the Employment of Disabled Persons (Caishui [2117] No.92) and the Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing the Administrative Measures for Tax Relief (Trial) (Guoshuifa [2115] No.129), The specific measures for the collection and management of preferential tax policies to promote the employment of the disabled are as follows:

1. Qualification determination

(1) Identification departments

The employers who meet the requirements of welfare enterprises and apply for the preferential tax policies stipulated in Articles 1 and 2 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Promoting the Employment of the Disabled (Caishui [2117] No.92) have placed more than 25% (including 25%) of the disabled. And the number of disabled employees is not less than 11, before applying to the tax authorities for tax relief, it shall first apply to the civil affairs department of the local people's government at or above the county level for the identification of welfare enterprises.

before applying to the tax authorities for enjoying the preferential tax policies stipulated in Articles 1 and 2 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Preferential Tax Policies for Promoting the Employment of Disabled Persons (Caishui [2117] No.92), the employing units that centrally resettle disabled persons, such as blind massage institutions and occupational therapy institutions, shall apply to the local county-level disabled persons' federation for recognition.

other units applying for the preferential tax policies stipulated in Articles 1 and 2 of the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Preferential Tax Policies for Promoting the Employment of Disabled Persons (Caishui [2117] No.92) may directly apply to the tax authorities.

(II) Confirmation Matters

The civil affairs department and the Federation of Disabled Persons shall, in accordance with the conditions specified in Item (2) and Item (5) of Article 5 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Preferential Tax Policies for Promoting the Employment of Disabled Persons (Caishui [2117] No.92), examine and confirm the proportion of the units mentioned in the preceding paragraph and whether they have the conditions for placing disabled persons, and issue written examination and confirmation opinions to the applicants.

The authenticity of the Disabled Persons' Certificate of the People's Republic of China and the disabled soldiers Certificate of the People's Republic of China shall be examined by the Disabled Persons' Federation and the civil affairs department respectively.

The specific audit management measures shall be separately formulated by the Ministry of Civil Affairs and the China Disabled Persons' Federation in consultation with relevant departments.

(3) Local civil affairs departments and disabled persons' federations shall not directly or indirectly charge any fees to the units applying for accreditation in the accreditation work. If the accreditation department collects fees from the units applying for accreditation, the units mentioned in the first two paragraphs of Item (1) of this article may directly apply to the competent tax authorities for tax reduction or exemption without accreditation.

II. Application and approval of tax reduction or exemption

(1) Units (hereinafter referred to as "taxpayers") recognized by civil affairs departments or disabled persons' federations may apply to the competent tax authorities for tax reduction or exemption and submit the following materials:

1. Taxpayers recognized by civil affairs departments or disabled persons' federations shall issue written examination and confirmation opinions from the above departments;

2. The labor contract or service agreement signed by the taxpayer and the disabled (copy);

3. Taxpayers' payment records of social insurance premiums for the disabled;

4. The taxpayer actually pays the wages to the disabled through financial institutions such as banks;

5. Other materials required by the competent tax authorities.

(2) Units that do not need to be recognized by the civil affairs department or the Disabled Persons' Federation and the units specified in Item (3) of Article 1 of this Notice (hereinafter referred to as "taxpayers") may apply to the competent tax authorities for tax reduction or exemption, and submit the following materials:

1. Labor contract or service agreement signed by the taxpayer and the disabled (copy);

2. Taxpayers' payment records of social insurance premiums for the disabled;

3. The taxpayer actually pays the wages to the disabled through financial institutions such as banks;

4. Other materials required by the competent tax authorities.

(3) Individuals with disabilities (hereinafter referred to as "taxpayers") who apply to enjoy the preferential tax policies stipulated in Articles 3 and 4 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Promoting the Employment of Disabled Persons (No.92 [2117] of the Ministry of Finance) shall directly apply to the competent tax authorities for tax reduction or exemption.

(4) the application for tax reduction or exemption shall be accepted by the tax service office of the tax authorities in a unified way and transmitted internally to the competent examination and approval department for examination and approval. The examination and approval department shall, in accordance with the conditions stipulated in Article 5 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Promoting Preferential Tax Policies for the Employment of Disabled Persons (No.92 [2117] of the Ministry of Finance) and the written examination and confirmation opinions issued by the civil affairs department and the Disabled Persons' Federation, issue the examination and approval opinions on tax reduction and exemption.

the examination and approval department for tax reduction and exemption only makes written examination and confirmation on the written examination and confirmation opinions issued by the civil affairs department or the disabled persons' Federation, but if it is found that the written examination and confirmation opinions issued by the civil affairs department or the disabled persons' Federation are wrong in daily inspection or inspection, it shall make specific treatment according to the relevant provisions such as the Administrative Measures for Tax Reduction and Exemption (Trial).

if the taxpayer's income tax is levied by other tax authorities, the competent tax authorities shall send a copy of the examination and approval opinions to the competent tax authorities for income tax, and the competent tax authorities for income tax will not examine and approve it separately.

(5) When accepting applications for tax reduction or exemption in items (2) and (3) of this article, the competent tax authorities may request the local civil affairs department or the Disabled Persons' Federation to examine and confirm the authenticity of the disabled persons' certificates.

iii. Measures for tax refund and tax reduction

(1) Value-added tax and business tax

Value-added tax shall be refunded on demand. The competent tax authorities shall refund the value-added tax to taxpayers who meet the conditions of tax reduction or exemption on a monthly basis. If the value-added tax paid in the current month is insufficient, it can be refunded in the value-added tax paid in the current year, and if it is still insufficient, it can be returned in the following month. If the tax payable in that year is less than the approved annual tax refund limit, it shall be limited to the tax payable in that year; If the tax payable in that year is greater than the approved annual tax refund limit, it shall be limited to the approved annual tax refund amount. If the taxpayer's tax payable in the current year is insufficient to be refunded, it shall not be carried forward to the next year for refund. Taxpayers' VAT refundable in the current month is calculated according to the following formula:

VAT refundable in the current month = the number of disabled people actually placed by taxpayers in the current month × the specific amount of VAT refundable for each disabled person determined by the tax authorities at or above the county level ÷12 Business tax is reduced on a monthly basis. The competent tax authorities shall reduce the business tax on a monthly basis. If the business tax payable in the current month is insufficient, it shall not be carried forward to the next month for reduction. Taxpayers' business tax reduction in the current month is calculated according to the following formula:

business tax reduction in the current month = the number of disabled people actually placed by taxpayers in the current month × the specific limit of annual business tax reduction for each disabled person determined by the tax authorities at or above the county level ÷12 Taxpayers who concurrently engage in business tax service and other tax services can only reduce the taxable amount of service service; If the taxable amount of services in the "service industry" tax item is insufficient to be deducted, it shall not be deducted from the taxable amount of services in other tax items.

taxpayers who pay value-added tax or business tax shall apply in writing for refund or reduction of value-added tax or business tax together with their tax returns from the month following the approval of the competent tax authorities.

the proportion of disabled people actually placed by taxpayers who meet the conditions of tax reduction and exemption in the total number of employees should be calculated on a monthly basis. If the proportion of disabled people in the current month does not reach 25%, the value-added tax of the current month or the business tax of the current month shall not be refunded.

at the end of the year, the proportion of disabled people actually placed by taxpayers in the whole year to the total number of employees should be calculated on an average. If the average proportion of disabled people in a tax year has not reached 25% in three months, the preferential policies of VAT refund, business tax reduction and enterprise income tax should be cancelled from October 1 of the following year.

Taxpayers' new placement of disabled persons starts from the month after signing labor contracts and paying social insurance such as basic old-age insurance, basic medical insurance, unemployment insurance and industrial injury insurance, and other employees start from the month after employment; If the number of disabled persons and other employees is reduced, it shall be counted from the next month.

(II) Income tax

1. For taxpayers who meet the conditions stipulated in Articles 2, 3 and 4 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Preferential Tax Policies for Promoting the Employment of Disabled Persons (Caishui [2117] No.92), the competent tax authorities shall implement preferential tax policies in accordance with relevant regulations.

2. The enterprise income tax of the original welfare enterprises during the period from October 1, 2117 to July 1, 2117 can still be reduced or exempted according to the original regulations, and the calculation method is as follows:

The original welfare enterprises that are exempted from enterprise income tax according to regulations, Exempted taxable income from October 1, 2117 to July 1, 2117 = (taxable income of enterprise income tax in 2117 ÷12)×6

The original welfare enterprise that was entitled to half of the enterprise income tax according to regulations had its taxable income reduced from October 1, 2117 to July 1, 2117 = (taxable income of enterprise income tax in 2117 ÷ 12 ÷)

3. Local tax authorities should adjust the local prepayment amount of enterprise income tax according to the current policy adjustment and relevant regulations.

iv. declaration of change

(1) if the number of disabled persons or employees actually placed by taxpayers changes, but they still meet the conditions for tax refund or tax reduction, they shall re-apply for identification and approval according to the changes in Articles 1 and 2 of this Notice.

(2) When a taxpayer no longer meets the conditions for tax refund or reduction due to changes in the number of disabled persons or employees on the job, it shall report to the competent tax authorities within 15 working days from the date when the situation changes.

V. Supervision and Management

(1) The competent tax authorities shall strengthen daily supervision and management, and establish an annual examination system in conjunction with the civil affairs departments and the Disabled Persons' Federation, so as to cancel the tax refund or reduction qualification of taxpayers who do not meet the conditions for tax refund or reduction, recover the tax refunded or reduced during the period of tax refund or reduction qualification, and impose penalties in accordance with the relevant provisions of the Tax Administration Law.

if a person defrauds a preferential tax policy by adopting the conditions stipulated in Article 5 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Promoting the Employment of Disabled Persons (Caishui [2117] No.92), once it is verified, the competent tax authorities shall recover the tax he defrauded and cancel his application for enjoying the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Promoting the Employment of Disabled Persons (Caishui [2117] No.92) within three years.

(2) The tax authorities and taxpayers shall establish special management ledgers. Before the revision of the collection and management software, the competent tax authorities and taxpayers should establish special management ledgers to dynamically grasp the taxpayer's annual tax refund and reduction limits and changes in disabled people.

(3) Local tax authorities should strengthen communication with civil affairs departments, labor and social security departments, disabled persons' federations and other relevant departments, and gradually establish and improve the information comparison and verification mechanism with the issuing departments. Establish a joint departmental meeting system, strengthen coordination and guidance on this work, solve problems in time, and ensure the smooth progress of this work.

this circular shall be implemented as of July 1, 2117, and all taxpayers who apply the original policy shall follow the provisions of this circular. The tax authorities of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning may formulate specific implementation measures according to the spirit of this circular.

State Taxation Administration of The People's Republic of China Ministry of Civil Affairs China Disabled Persons' Federation

June 15th, 2117