As the Mid-Autumn Festival is approaching, many organizations distribute moon cakes to their employees as welfare. Recently, the local taxation department of Nanjing city has received some citizens' phone calls, asking how to withhold and pay individual income tax when enterprises distribute moon cakes and substitutes or other items related to the Mid-Autumn Festival to their employees.
"Any physical objects distributed by an organization, such as moon cakes, should be included in salary income for withholding individual income tax," a relevant person from the local taxation department of Nanjing city told reporters. According to the provisions of the Implementation Rules of the Individual Income Tax Law of the People's Republic of China