Legal basis: Notice of the Ministry of Finance and the Ministry of Civil Affairs of State Taxation Administration of The People's Republic of China on Adjusting and Perfecting the Tax Policy for Supporting Self-employed Retired Soldiers' Entrepreneurship and Employment 1. For self-employed retired soldiers engaged in self-employment, according to the annual limit of 8,000 yuan per household, the actual business tax, urban maintenance and construction tax, education surcharge, local education surcharge and personal income tax that should be paid in the current year will be deducted in turn within three years. The ceiling standard can be increased by 20%, and the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government can determine the specific ceiling standard within this scope according to the actual situation in the region and report it to the Ministry of Finance and State Taxation Administration of The People's Republic of China for the record.
If the taxpayer's annual tax payable is lower than the above deduction limit, it shall be limited to the actual tax paid; If it is greater than the above deduction limit, it shall be limited to the above deduction limit. If the actual operating period of the taxpayer is less than one year, the tax reduction and exemption limit shall be converted according to the actual month. The conversion formula is: tax reduction and exemption limit = annual tax reduction and exemption limit ÷ 12× actual operating months.
In the month when taxpayers enjoy preferential tax policies, they should report to the competent tax authorities with the "China People's Liberation Army Veterans Certificate" or "China People's Liberation Army Veterans Certificate" and relevant information required by the tax authorities.