Tax incentives for recruiting the poor

Enterprises that employ laid-off workers can enjoy preferential treatment given by the state tax department and the financial department. The Ministry of Finance, State Taxation Administration of The People's Republic of China and other ministries have successively formulated and promulgated preferential policies for laid-off workers to enjoy reemployment support. For example, State Taxation Administration of The People's Republic of China and the Ministry of Finance issued the Notice on Tax Policies for the Re-employment of Laid-off Workers (Caishui [2002] No.208). Supplementary Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Tax Policies for Re-employment of Laid-off Workers (Caishui [2003] 133), etc. These policies stipulate that newly-established service-oriented enterprises that employ laid-off workers and reach 30% of the total number of employees in that year and sign labor contracts with these employees for more than three years can be exempted from business tax, urban construction tax, education surcharge and enterprise income tax within three years. Enterprises in the use of laid-off workers re-employment preferential policies, must be strictly in accordance with relevant state regulations. For example, laid-off workers must have re-employment concession cards, enterprises must be verified by the labor and social security departments and obtain corresponding certification certificates, and then apply to the tax authorities at or above the county level for tax reduction and exemption, and so on.