The employment and well-being of college graduates and young people are crucial for social welfare, economic development, and the future of the nation. In recent years, the Party Central Committee and the State Council have implemented a series of tax incentives to support the employment and entrepreneurship of college graduates and young people. The State Taxation Administration has organized the main tax preferential policies that support the employment and entrepreneurship of college graduates and young people, and has formulated policy guidelines to facilitate college graduates, young people, and a wide range of business entities in understanding the applicable tax preferential policies in a timely manner.

Policy Contents

From January 1, 2019, to December 31, 2025, college graduates in their graduation year who engage in individual businesses and hold an "Employment and Entrepreneurship Certificate" (with the annotation "Tax Policies for Independent Entrepreneurship" or "Tax Policies for Independent Entrepreneurship during the Graduation Year") can deduct their actual payable value-added tax, urban maintenance and construction tax, educational surcharge, local education surcharge, and personal income tax within a limit of 12,000 yuan per household per year, for a period of 3 years (36 months). The limit can be increased by up to 20%. Provincial, autonomous regional, and municipal people's governments can determine the specific limit within this range based on local conditions.

Policy Applicants

College graduates in their graduation year who hold an "Employment and Entrepreneurship Certificate" (with the annotation "Tax Policies for Independent Entrepreneurship" or "Tax Policies for Independent Entrepreneurship during the Graduation Year"). College graduates refer to students who have completed higher education in regular higher education institutions or adult higher education institutions. The graduation year refers to the natural year in which the graduation occurs, namely from January 1 to December 31.

Eligibility Conditions

1. If the actual payable amount of value-added tax, urban maintenance and construction tax, educational surcharge, local education surcharge, and personal income tax is less than the tax exemption limit, the actual payable amount will be the limit. If the actual payable amount exceeds the tax exemption limit, the limit will be applied.
2. The calculation basis for urban maintenance and construction tax, educational surcharge, and local education surcharge is the amount of value-added tax payable before enjoying this tax preferential policy.
3. If the taxpayer's actual operating period is less than 1 year, the tax exemption limit should be calculated based on the actual number of months of operation. The conversion formula is as follows: Tax Exemption Limit = Annual Tax Exemption Limit ÷ 12 × Actual Number of Operating Months.

Application Process

1. During the graduation year, college graduates can apply for the "Employment and Entrepreneurship Certificate" from public employment service agencies by presenting their student ID card. Alternatively, they can authorize the employment guidance center at their university to apply for the certificate on their behalf. After leaving the university, college graduates can directly apply for the "Employment and Entrepreneurship Certificate" from public employment service agencies according to the regulations, using their graduation certificate.
2. During the graduation year, college graduates can submit an application to the human resources and social security department at or above the county level (including county-level) in the entrepreneurial location. They should provide the "Employment and Entrepreneurship Certificate" and the registration license for individual businesses (those who haven't completed the integration of the two certificates should also provide the "Tax Registration Certificate"). The human resources and social security department at or above the county level should verify whether they have enjoyed preferential tax policies for key groups in entrepreneurship and employment, following the provisions of document No.〔2019〕22 issued by the Ministry of Finance and other relevant departments. For individuals who meet the conditions specified in document No. 〔2019〕22, the "Employment and Entrepreneurship Certificate" should be annotated with "Tax Policies for Independent Entrepreneurship" or "Tax Policies for Independent Entrepreneurship during the Graduation Year."
3. When taxpayers declare their taxes, they should choose the nature code and name of the tax exemption by filling in the relevant columns of the tax declaration form to enjoy this tax preferential policy. College graduates in their graduation year should keep the "Employment and Entrepreneurship Certificate" (with the annotation "Tax Policies for Independent Entrepreneurship" or "Tax Policies for Independent Entrepreneurship during the Graduation Year") for inspection purposes.

Policy Basis

1. "Notice of the Ministry of Finance, State Taxation Administration, Ministry of Human Resources and Social Security, and Poverty Alleviation Office of the State Council on Further Supporting and Promoting Tax Policies for Key Groups in Entrepreneurship and Employment" (CaiShui [2019] No. 22).
2. "Announcement of the State Taxation Administration, Ministry of Human Resources and Social Security, Poverty Alleviation Office of the State Council, and Ministry of Education on the Specific Operational Issues of Implementing Tax Policies to Support and Promote Entrepreneurship and Employment of Key Groups" (Announcement of the State Taxation Administration [2019] No. 10).
3. "Announcement of the Ministry of Finance, State Taxation Administration, Ministry of Human Resources and Social Security, and National Rural Revitalization Bureau on Extending the Implementation Period of Some Preferential Tax Policies for Poverty Alleviation" (Announcement of the Ministry of Finance, State Taxation Administration, Ministry of Human Resources and Social Security, National Rural Revitalization Bureau [2021] No. 18).
4. "Announcement of the Ministry of Finance and State Taxation Administration on the Continued Implementation of Preferential Policies for Urban Maintenance and Construction Tax" (Announcement of the Ministry of Finance and State Taxation Administration [2021] No. 27).