An official from the State Taxation Administration said recently
that taxation documentation designed to support the unemployed has
been delivered to the State Council for examination. The
supplements may be implemented in the near future.
According to the Legal Daily, the central government and the
State Council have decided to further extend the range of policies
designed to relieve the burdens of unemployed workers and assist
them find work. The State Taxation Administration is making every
effort to carry out the policy and specify the relevant taxation
policies by laying down detailed operation measures. The following
aspects form the basis of the supplements.
The supplements clarify the scope of the policy and determine which
laid-off workers will be able to enjoy favorable taxation measures.
The beneficiaries include laid-off workers and unemployed personnel
from state-owned enterprises, people made redundant through
state-owned enterprise bankruptcies, unemployed people with minimum
living standards guaranteed by the current system and who have been
out of work for more than one year, and workers from large to
medium state owned enterprises laid off due to supplementary trade
reforms.
The supplements also specify the scope of service organizations and
national limited trade enterprises which will not benefit from the
favorable taxation policies. For example, service organizations
refers to those enterprises engaged in business activities
identified in the current business tax "service trade" list,
covering agency businesses, hotel businesses, the food and beverage
industry, storage businesses, rental businesses, advertising and
other service related ventures. National limited trade enterprises
are those not encouraged by government and which can compete
aggressively in the market and make reasonable profits.
The supplements aim to reduce the proportion of income tax paid by
existing service enterprises with more than 30 percent of laid-off
workers and for new service enterprises with under 30 percent of
laid-off workers.
In
addition, the supplements also give clear definitions on issues
such as the extended range of value added taxes and business taxes,
specifications for new enterprises, make links with current
favorable taxation policies and identify qualifications required by
economic bodies.
(China.org.cn by Li Xiao November 28, 2002)