After discharge, check the lump sum, service-credit transfer, and self-employment tax relief
Three matters can be valuable. Independent-employment veterans may receive a service-length-based discharge lump sum, with increases for honors. Military years can count toward employment seniority and qualifying insurance years. Eligible individual businesses run by independently employed former soldiers can offset up to RMB 20,000 a year in specified taxes for three years, with possible local increases.
What it takes
No charge stated. The military transfers the relevant social insurance records and funds; complete continuation with the local social insurance agency.
What you may gain
The resettlement regulations provide an independent-employment lump sum for noncommissioned officers and conscripts based on active-service length, funded centrally at standards set and adjusted by the relevant veterans, military political-work, and finance authorities. Award-related increases have five bands: 25% for medals or honorary titles; 20% for first-class combat merit or first-level commendation; 15% for second-class combat merit, first-class merit, or second-level commendation; 10% for third-class combat merit or second-class merit; and 5% for fourth-class combat merit or third-class merit. Veterans not promptly employed may apply for eligible unemployment benefits at their household registration location, with active-service years treated as contribution years, except those resettled through retirement or supported-care arrangements. The Veterans Support Law counts service toward employment seniority, combines eligible pension, medical, and unemployment contribution years before and after service, and treats former noncommissioned officers' and conscripts' service as grassroots work experience. The Military Insurance Law likewise treats active service as employee medical insurance contribution years. The 2023 tax announcement allows eligible self-employed former soldiers to offset actual VAT, urban maintenance and construction tax, education surcharge, local education surcharge, and personal income tax, in that order, up to RMB 20,000 per household annually for three years, or 36 months. Local ceilings may rise by up to 20%. Eligible hiring enterprises receive a separate RMB 6,000-per-person annual standard, locally increasable by up to 50%. The policy runs January 1, 2023–December 31, 2027; an eligible three-year period not yet completed may continue to its end.
Context & considerations
Pending verification: the current discharge lump-sum amount was not found in a verifiable public original, so no figure is supplied. During conscript service, families may also receive a preferential allowance; the Military Service Law leaves the standard to local governments with a fixed central subsidy, so ask the county approving enlistment. Tax relief offsets tax actually owed rather than paying cash; an unsuccessful business may not use the ceiling, hence a medium benefit rating. The source also notes that the veterans employment and entrepreneurship promotion regulations effective August 1, 2026, recognize vocational qualifications obtained during service nationwide after discharge.
Research & references
State Council and Central Military Commission (2024). Veterans Resettlement Regulations, Order No. 787, Articles 21, 22, 74, 81, and 85. https://www.gov.cn/gongbao/2024/issue_11526/202408/content_6969192.html; Standing Committee of the National People's Congress (2020). Veterans Support Law, Articles 42, 44, and 50. http://www.mod.gov.cn/gfbw/fgwx/flfg/16048597.html; Standing Committee of the National People's Congress (2012). Military Insurance Law, Articles 16 and 23. https://flk.npc.gov.cn/detail?id=2c909fdd678bf17901678bf73e160645; Ministry of Finance, State Taxation Administration, and Ministry of Veterans Affairs (2023). Announcement on tax policies supporting independent-employment former soldiers' entrepreneurship and employment, No. 14 of 2023. https://www.gov.cn/zhengce/zhengceku/202308/content_6896456.htm