Beijing, September 16 - The State Administration recently issued a document (Letter from the Taxation Administration Regarding Relevant Policy Issues of Self-Inspection of Taxation for 2009), clarifying issues related to six major taxes including enterprise income tax, individual income tax, value-added tax, consumption tax, business tax, and stamp duty. This was due to the ongoing "tax inspection storm," during which differing interpretations and controversies arose between local tax authorities and enterprises because some tax policy documents lacked strong enforceability.
Yesterday, according to the City Local Taxation Bureau, based on the newly issued "Regulations for the Implementation of the Individual Income Tax Law" by the Taxation Administration, after deducting a certain standard of official expenses, subsidies such as transportation and communication allowances distributed by enterprises to employees will be taxed under the category of "wages and salaries."
Details regarding the specific collection procedures for transportation and communication subsidies are available here.
The scope of "wages and salaries" includes...