On December 13th, 2013, the State Administration of Taxation issued an Announcement on the preferential VAT policies for the employment of disabled personnel.

Such Announcement clarifies previous legislation by stating that the “labour contracts or service agreements” shall include the labour contracts or service agreements under which employees receive salary for either full time or part time work: therefore, the preferential VAT policies may be enjoyed by employers that have entered into labour contracts or service agreements with disabled persons in accordance with law and arranged disabled persons to actually work in their companies even if employing disabled persons as part-time workers.

We shall in fact remind here that, according to applicable PRC Law, stipulation of a written labour contract is not compulsory in case of part – time employment.

The Announcement came retroactively into effect on October 1st, 2013.

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