Reply of the State Administration of Taxation on Whether a Sole Proprietorship Converted to an Individual Business Can Enjoy the Preferential Policy of Individual Income Tax for Reemployment

This document clarifies that a sole proprietorship converted to an individual business after September 30, 2002 does not qualify for the individual income tax reemployment preferential policy under the relevant notice, but notes that from January 1, 2006, individual businesses may apply for such benefits under a new State Council notice. The document itself has been fully annulled as per a 2016 announcement.