Notice on Individual Income Tax on the Work Related Injury Insurance - China
June 25, 2012 By UB & Co. Attorneys and Counselors
The State Administration of Taxation has issued the Notice regarding the Policy of the Individual Income Tax on the Work-related Injury Insurance Treatment (the “Notice”) on May 3rd, 2012, which has retroactively become effective as of January 1st, 2011. May 13rd, 2012.
According to the Notice, the work-related injury insurance, which is obtained by the injured employee or his/her relatives according to the ´Regulations of the Work-related Injury Insurance´, is exempted from the individual income tax.
The above-mentioned work-related injury insurance, according to the Regulations of the Work-related Injury Insurance, includes the one-off pension, disability allowance, one-off work-related injury medical pension, one-off disability employment pension, work-related medical treatment, hospital food subsidy, out-of-town medical transportation and accommodation expenses, work-related recovery expenses and nursery expenses obtained by the injury employee, as well as the funeral pension, dependent relative pension and one-off work-related death pension obtained by the employee’s relatives due to the employee’s work-related death.
Due to the fact that the Notice has become retroactively effective as of January 1st, 2011, if the employee or his/her relatives have already paid the individual income tax of the work-related injury insurance, they can apply for the refund of the individual income tax at the competent tax authority.
ABOUT THE AUTHOR: UB & CO.
UB & CO Attorneys and Counselors is an international law firm with presence in Greater China, United States and Latin America that provides legal services to local and international clients, including multinational corporations, investment funds, social enterprises, environmental enterprises, NGOs, government organizations and high net worth families and individuals.
We have the depth, experience, technical skills and flexibility to handle multi-jurisdictional transactions, commercial disputes and regulatory matters. Our focus is on "legal strategy consulting" for market entry, joint ventures, foreign investment, and private equity and venture capital investments.
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More information about UB & Co. Attorneys and Counselors
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
The above-mentioned work-related injury insurance, according to the Regulations of the Work-related Injury Insurance, includes the one-off pension, disability allowance, one-off work-related injury medical pension, one-off disability employment pension, work-related medical treatment, hospital food subsidy, out-of-town medical transportation and accommodation expenses, work-related recovery expenses and nursery expenses obtained by the injury employee, as well as the funeral pension, dependent relative pension and one-off work-related death pension obtained by the employee’s relatives due to the employee’s work-related death.
Due to the fact that the Notice has become retroactively effective as of January 1st, 2011, if the employee or his/her relatives have already paid the individual income tax of the work-related injury insurance, they can apply for the refund of the individual income tax at the competent tax authority.
ABOUT THE AUTHOR: UB & CO.
UB & CO Attorneys and Counselors is an international law firm with presence in Greater China, United States and Latin America that provides legal services to local and international clients, including multinational corporations, investment funds, social enterprises, environmental enterprises, NGOs, government organizations and high net worth families and individuals.
We have the depth, experience, technical skills and flexibility to handle multi-jurisdictional transactions, commercial disputes and regulatory matters. Our focus is on "legal strategy consulting" for market entry, joint ventures, foreign investment, and private equity and venture capital investments.
Copyright UB & Co. Attorneys and Counselors
More information about UB & Co. Attorneys and Counselors
View all articles published by UB & Co. Attorneys and Counselors
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
