The Chinese government has decided to grant a three-year-long tax benefit to inspire self-employment and support small companies to hire more people in need.
Under a decision jointly announced Saturday by the Ministry of Finance, State Taxation Adm
inistration and other governmental departments, people in need who start a business can have 12,0
00 yuan (about 1,790 US dollars) deducted from their families’ annual share of taxes over three years.
The preferential treatment will target those registered as needy, jobless for more th
an half a year, on subsistence allowances or recent graduates from higher educational institutions.
The decision allows provincial-level governments to raise tax relief by 20 percent at most, depending on the needs of the region.
Companies who have hired the needy and paid social insurances for them can also
enjoy tax deductions to the tune of 6,000 yuan per person a year for three years.