Multiple preferential policies and tax exemptions for companies hiring people with disabilities

In today's society, employing disabled people is not only a manifestation of corporate social responsibility, but also enjoys a series of preferential policies and tax exemptions. Let us have an in-depth understanding of these policies to provide powerful guidance for the combination of corporate development and social responsibility.

1. Employment security fund for persons with disabilities

1. Conditions for exemption from payment If the company arranges employment for disabled people in a proportion that meets the local regulations (usually not less than 1.5% of the total number of employees in the unit, the specific ratio varies from place to place), the company can be exempted from paying the employment security fund for disabled people. For example, if the employment ratio for disabled people in a certain area is 1.5%, and the company has 100 employees, then the company can arrange for employment of at least 1.5 people (usually 2 people after rounding up according to the proportion) of disabled people, and it can be exempted from paying disability insurance.

2. Payment reduction in different tranches If the employment ratio of disabled persons does not reach the prescribed ratio, payment reductions will also be made in stages according to the policy. For example, from January 1, 2023 to December 31, 2027, if the employer arranges for the employment ratio of disabled people to be more than 1% (inclusive), but does not meet the proportion specified in the locality, the employer shall pay 50% of the prescribed amount of employment security fund for disabled people; if the employer arranges for the employment ratio of disabled people to be less than 1%, the employer shall pay 90% of the prescribed amount of employment security fund for disabled persons.

2. Taxation

1. Value-added tax For units and individual industrial and commercial households that place disabled people, the tax authorities will levy and refund the value-added tax according to the number of disabled people placed by the taxpayer according to the limit. The specific monthly refundable value-added tax limit for each disabled person who is resettled shall be determined by the tax authorities at or above the county level based on four times the monthly minimum wage standard approved by the people's government of the province (including autonomous regions, municipalities, and cities under separate state planning) applicable to the district or county where the taxpayer is located.

2. Corporate income tax If an enterprise places disabled personnel, on the basis of actual deductions from the wages paid to disabled employees, an additional deduction of 100% of the wages paid to disabled employees can be made when calculating taxable income.

3. Urban land use tax For units where the average monthly number of disabled people employed in a tax year accounts for more than 25% (inclusive) of the total number of employees of the unit and the actual number of disabled people placed is more than 10 (inclusive), the urban land use tax for that year may be reduced or exempted. The specific tax reduction and exemption ratios and management measures shall be determined by the finance and taxation authorities of the provinces, autonomous regions, and municipalities directly under the Central Government.

3. Requirements for the level of disability certificate

1. Job subsidies and social insurance subsidies Employers that recruit intellectually disabled, mentally disabled, and physically disabled laborers with level one or level two disabilities can apply for job subsidies and social insurance subsidies if they meet relevant conditions. Employers that recruit disabled graduates from ordinary colleges and universities and senior secondary schools who are not the above-mentioned "three types of disabled people" and have not been employed within 2 years from the date of graduation can also enjoy certain social insurance subsidies, but this has nothing to do with the level of the disability certificate, and mainly depends on whether they meet the graduation time limit and other conditions.

2. Policies related to employment security benefits for people with disabilities Generally speaking, as long as you hold a valid disability certificate (disabled military certificate), you can be recognized when calculating the employment ratio of disabled people. However, some areas have special regulations for the calculation of the proportion of disabled people with level 1-2 disability certificates. For example, for some local enterprises who hold level 1-2 disability certificates, one person can be counted as two people (specifically, it is subject to local policies).

3. Tax incentives There are no clear restrictions on the level of the disabled person's certificate for the instant refund of value-added tax and the preferential corporate income tax deduction. As long as other relevant conditions are met, such as signing a labor contract with a disabled person for more than one year, paying social insurance for the disabled, and paying a salary of no less than the local minimum wage to the disabled through banks and other financial institutions, you can enjoy the corresponding discounts. Preferential policies for the employment of disabled people in different regions may differ in specific implementation standards and details. Companies should enjoy relevant preferential treatment and exemptions according to specific local policies and regulations. While achieving their own development, they should create more opportunities for the employment of disabled people and jointly promote social harmony and progress.

If any company wants to recruit people with disabilities for employment, please contact us.