FIEs to get tax rebate for hiring disabled Chinese workers

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Foreign companies with disabled Chinese workers on their payroll will qualify for tax rebates from next year according to a recent announcement issued by the State Administration of Taxation.

According to the announcement, the maximum tax rebate per disabled worker will be RMB35,000 a year. Further, disabled workers will be exempt from paying income tax on their salaries. Companies whose work force is comprised of more than 25 percent disabled workers will be eligible for rebates on both income and value-added tax. Those with less than 25 percent will only get income tax rebates.

The new policy, which will apply nationwide from July 1, is aimed at “creating a favorable taxation environment for fair competition and promoting employment for disabled people” a SAT official said.

China has nearly 83 million disabled people, with only 22.7 million in some sort of employment and about 8.6 million officially listed as unemployed according to government statistics.