Q&A on Asian Bus.

This is the place that our Editors will reply to your various questions about doing business in Asia.
Please utilize it as a solution to the issues you have doing your daily business across Asia.

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Are benefits received by employees in the PRC taxable?

  • FAQ: CHINA
  • Date: 15.07.2010

According to Art 4 of the Individual Income Tax Law, welfare benefits are exempted from individual income tax. A Notice issued by the Ministry of Finance and the State Bureau of Taxation on 27 June 2006, excludes from taxation contributions made by an individual employee and by the employer to the housing, medical insurance, and basic pension funds according to the ratios required by the State or local governments.

For more details, see Asia Pacific Employment Law Commentary , [CHN ¶70-711] Employees