BEIJING, Feb. 3 (Xinhua) -- Chinese government has decided to grant a three-year-long tax benefit to inspire self-employment and support small companies to hire more of those in need.

(File photo)

Under a decision jointly announced Saturday by the Ministry of Finance, State Taxation Administration and other governmental departments, people in need who start a business can have 12,000 yuan (about 1,791 US dollars) deducted from their families' annual share of taxes over three years.

The preferential treatment will target those registered as needy, jobless for more than half a year, on subsistence allowances or recent graduates from higher educational institutions.

The decision allows provincial-level governments to raise tax relief by 20 percent at most, depending on the needs of the region.

Companies who have hired the needy and paid social insurances for them can also enjoy tax deduction to the tune of 6,000 yuan per person a year for three years.

Local governments at provincial level can lift tax relief by 30 percent at most according to local conditions.

The tax deduction mainly covers value-added tax, urban maintenance and construction tax, educational surcharge and individual income tax, and will be effective from Jan. 1, 2019 to Dec. 31, 2021.