December 2018 / China

The State Council recently issued the Interim Measures for Special Individual Income Tax Deductions. The document was further polished based on public opinions. According to the interim measures, if taxpayers' children are educated at foreign schools or they are receiving continuing professional education, they should keep the foreign school's admission letters as well as continuing education certificates to be subject to future examinations. The maximum taxable income deductions on medical cost stemming from serious diseases are lifted to 80,000 yuan a year from 60,000 yuan. The interim measures will be effective from January 1, 2019.

The State Council released on December 5, 2018 the Opinions about the Work on Promoting Employment at the Current and Next Stages, saying that companies that do not cut jobs or cut fewer jobs than initially planned can get back 50% of unemployment insurance premiums in the previous year. The document outlines four measures to promote employment in the current and next stages. The first is to support steady business development; the second is to encourage employment and entrepreneurship; the third is to implement job training programs; the fourth is to provide assistance to jobless and laid-off people. The document stressed that local governments must fulfill their responsibilities to promote employment, and relevant departments should release policy measures that support job creation and stabilization, and instruct enterprises to assume their social responsibilities and make concerted efforts.

The State Administration for Market Regulation recently issued the Circular about the Launch of New Business Licenses. The SAMR decided to redesign a new edition of business licenses and adopt the new licenses. There are six prominent changes. The business license's layout is optimized with an original and duplicate copy; QR code is printed on the license; eight formats of license remain unchanged; printing management is enhanced; the use of ethnic languages in the license is standardized. Starting from March 1, 2019, new business licenses will be issued to newly registered business establishments, or existing market entities that have changed registrations or applied to obtain new business licenses.

According to the Administrative Measures for Tax Vouchers, the State Administration of Taxation decided to adjust the arrangement on the issuance of the Certificate of Tax Payment starting from January 1, 2019. Starting from January 1, 2019, the certificate will no longer be a means of management on tax vouchers, and will be affixed with "business seal" instead of "tax collection seal". If an individual taxpayer applies to get a certificate for income tax payment (rebate) after January 1, 2019, the tax agency shall issue the Record of Tax Payment and no longer provide the Certificate of Tax Payment.