阿优精灵·智能法规库
Circular of the State Taxation Administration on Issues With Respect to the Implementation of Levy and Exemption of Individual Income Tax on Certain Subsidies for Foreign Individuals
- Circular of the State Taxation Administration on Issues With Respect to the Implementation of Levy and Exemption of Individual Income Tax on Certain Subsidies for Foreign Individuals
Guo Shui Fa [1997] No. 54
NOTE
In accordance with Circular of the State Taxation Administration on Issues With Respect to Follow-up Administration After Cancelling and Delegating Several Tax Administrative Approval Items for Foreign-invested Enterprises, Foreign Enterprises, and Foreign Individuals (Guo Shui Fa [2004] No. 80), starting from July 1, 2004, “14. Follow-up administration of the approval for individual income tax exemption on housing, meal, and other subsidies for foreign individuals shall be cancelled. The approval for individual income tax exemption on subsidies for foreign individuals shall be cancelled.” Therefore, the approval process specified in this Circular shall not be implemented.
Individual Income Tax Law of the People’s Republic of China and its Implementation Regulations , and Circular of the Ministry of Finance and the State Taxation Administration on Several Issues With Respect to Individual Income Tax Policies (Cai Shui Zi [1994] No. 20) stipulate the scope of individual income tax exemption for foreign individuals receiving certain subsidies. Specific definitions and administration issues regarding the implementation of the aforementioned provisions are hereby clarified as follows: - The reasonable housing, meal, and laundry subsidies received by foreign individuals in non-cash form or through the reimbursement of actual expenses shall be exempt from individual income tax. The taxpayer shall provide valid documentation for such subsidies to the tax authority in charge when filing the tax return for income from wages and salaries in the month following that in which he/she receives the aforesaid subsidies or any changes to the amount or payment method thereof occur. The tax authority in charge shall verify and con firm the tax exemption.
- The relocation income received by foreign individuals through reimbursement of actual expenses due to assuming or terminating a position in China shall be exempt from individual income tax. The taxpayer shall provide valid documentation to the tax authority in charge. The tax authority in charge shall verify and con firm the exemption for the reasonable portion. Payments made on a monthly or regular basis by foreign-invested enterprises and foreign enterprises through their establishments or places within China to their foreign employees under the category of relocation fees shall be included in the income from wages and salaries and subject to individual income tax.
- Reasonable domestic and overseas business travel subsidies received by foreign individuals shall be exempt from individual income tax. The taxpayer shall provide documentation (copies) of travel and accommodation expenses or the related travel plan arranged by the enterprise. The tax authority in charge shall con firm the tax exemption.
- Home visit allowances received by foreign individuals shall be exempt from individual income tax. The taxpayer shall provide documentation (copies) of transportation expenses for home visits. The tax authority in charge shall verify and con firm the exemption for the reasonable portion actually used for the taxpayer’s own home visits, provided that the frequency of home visits and payment standards in a year are reasonable.
- Language training allowances and children’s education subsidies received by foreign individuals shall be exempt from individual income tax. The taxpayer shall provide documentation of expenses and proof of duration for receiving such education within China. The tax authority in charge shall verify and con firm the exemption for the reasonable amounts of the taxpayer’s language training allowances and his/her children’s language training allowances and education subsidies received within China.
All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.