Exempt from VAT. According to the Ministry of Finance's Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Implementing Special Preferential Policies of Value-added Tax for College Students' Work-study Program, college students can enjoy special preferential policies and reductions of value-added tax when they participate in the "Work-study Program" activities stipulated by the state. College students participate in work-study programs in the form of labor services, and the labor remuneration is declared and paid by the payment unit in accordance with the provisions of the tax law, but it is exempt from value-added tax. Specifically, when college students participate in work-study programs, the payment unit can declare the salary income of college students as tax-free items without paying value-added tax.

How many hours do students work and study a week?

In principle, the work-study time of college students in China is no more than 8 hours per week.

The Ministry of Education and the Ministry of Finance issued the revised Management Measures for College Students' Work-study Program (Revised 20 18) (hereinafter referred to as the Measures). The "Measures" require that priority be given to work-study programs for students from poor families. In principle, the time for students to participate in work-study programs should not exceed 8 hours per week and 40 hours per month.