Base salary is taxable as employment income. Reasonable relocation allowances paid on an actual reimbursement basis with supporting invoices in relation to the commencement and cessation of an employment in the People’s Republic of China (PRC) may be exempt from tax. a taxpayer can declare a bonus as an income distinct from salary only once a year and that such bonus will be subject to a separate calculation method (see below). Other special payments, even if these are bonuses in nature, need to be added to other monthly compensation and taxed at the marginal rates.