Policy for Lowering the Collection Standards for the Employment Security Funds for the Disabled
· Document Number：Letter No. 175  of the State Administration of Taxation
· Area of Law： Civil Law Taxation
· Level of Authority： Departmental Regulatory Documents
· Date issued：05-11-2018
· Effective Date：05-11-2018
· Issuing Authority： State Administration of Taxation
· Status： Effective
Notice of the State Administration of Taxation on Implementing the Policy for Lowering the Collection Standards for the Employment Security Funds for the Disabled
(Letter No. 175  of the State Administration of Taxation)
The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning; and the local special commissioner's offices of the State Administration of Taxation ("SAT"):
For the purposes of further easing social burden and supporting the development of the real economy, according to the decisions and arrangements of the CPC Central Committee and the State Council, the Ministry of Finance issued the Notice on Lowering the Collection Standards for Some Government Funds (No. 39 , Ministry of Finance, hereinafter referred to as the "Notice"), specifying that as from April 1, 2018, the upper limit of the collection standards for the employment security funds for the disabled (hereinafter referred to as the "security funds") shall be reduced from three times the average wage of the local community to three times. You are hereby notified of the tax system implementing the relevant matters in an organized manner as follows:
I. Profoundly understanding the spirit of the CPC Central Committee and accurately grasping the substance of the policy
Continuing to lower the collection standards for the security funds is an important measure to thoroughly execute the decisions and arrangements at the 19th CPC National Congress and the Central Economic Work Conference and in the Government Work Report in relation to reduction of charges and burden and a positive response to public concern from the CPC Central Committee and the State Council. The taxation authorities in all regions shall further study laws and regulations such as the Law of the People's Republic of China on the Protection of Disabled Persons and the Regulation on the Employment of the Disabled, fully recognize the significance of the collection of the security funds for the promotion of employment of the disabled, deeply perceive the spirit of the decisions of the CPC Central Committee, accurately grasp the requirements of the Notice, and strive to effectively carry out the charges and burden reduction policy, so as to ease the burden on employers, support the development of the real economy, and protect the lawful employment rights and interests of the disabled.
II. Conscientiously studying and publicizing the policy and prompting the efficient implementation of the policy
The taxation authorities responsible for the collection of the security funds shall organize policy study and training and propel collectors and payers to correctly understand and implement the policy. Extensive and thorough publicity shall be given to the policy through websites, mobile application programs, news media, 12366 tax service hotline, tax service halls, and other channels, in active cooperation with finance authorities and the federations of disabled persons, and the policy shall be explained and lectured on in tax collection administration, so as to strive to make the policy well known to employers and ensure the efficient implementation of the policy.
III. Promptly adjusting the tax collection administration system and ensuring orderly and efficient tax collection administration
A policy transition shall be effectively conducted in strict accordance with the requirements of the Notice, and the parameters and configuration of the tax collection administration system shall be adjusted in a timely manner, so as to ensure the smooth operation of the system. Employers that have filed tax returns for the current month since the implementation of the Notice shall be promptly informed of the policy adjustment information, and it shall be confirmed whether they need to re-file tax returns. For employers paying in excess, the procedure for refund and deduction shall be launched as required so as to effectively protect the rights and interests of employers. The implementation of the policy shall be closely followed, attention shall be paid to the trends in public opinion, and problems that arise shall be quickly and decisively handled and reported to the superior taxation authorities and local party committees and governments in a timely manner.
In order to learn about and understand the implementation of the above-mentioned charges and burden reduction policy, the taxation bureaus undertaking the collection of the security funds of provinces (autonomous regions and municipalities directly under the Central Government) shall, within 15 days after the end of a year, submit the Form of Burden Easing Information with respect to Regions Where the Tax Authorities Collect the Employment Security Funds for the Disabled and the Analysis Report on the Implementation of the Charges and Burden Reduction Policy to the State Administration of Taxation (the Department of Income Tax) through the FTP. FTP address: center/所得税司/社保费征管处/2018年落实减负政策汇总。
Annex: Form of Burden Easing Information with respect to Regions Where the Tax Authorities Collect the Employment Security Funds for the Disabled (Omitted)
State Administration of Taxation
May 11, 2018