Which kind of subsidy can be exempt from taxation?
Tax official: Hello!This is the foreign taxation bureau.
Taxpayer: Hello! This is George Brown from ABC company. I'd like to speak to Mr.Li.
Tax official: Hold the line, please.
Mr.Li. : Li Tong speaking .What can I help you ,Brown?
Taxpayer: I have a question to consult with you . Is the subsidy taxed on like salary?
Mr.Li. : It is different from salary, and there are many exemptions for the foreigners .
Taxpayer: Could you explain it in detail?
Mr.Li. : Subsidies, such as house ,meal, and laundry allowance, are exempt ,as long as they are not paid by cash and can be reimbursed for the actual expenses.
Taxpayer: What about the moving house fee happening in the course of leaving office ?
Mr.Li. : The amount actually happening can be exempt, but it is unreasonable if the money is paid every month in the name of moving house.
Taxpayer: How about the allowance of trip on business?
Mr.Li. : If you can provide the accurate evidences to the fares and lodging fees and can present the related stipulation of your company, it can be exempt.
Taxpayer: Does that include the allowance of trip abroad?
Mr.Li. : Yes.
Taxpayer: Is the home leave fare exempt from taxation?
Mr.Li. : If it is for an expatriate himself and both the amount and the frequency every year are considered reasonable, it can be exempt .
Taxpayer: What about the language training and children education fees?
Mr.Li. : If the expenses happen within China and the amount is reasonable , they can be exempt .
Taxpayer: Thank you for your help. Bye for now .
Mr.Li. : Bye .
the foreign taxation bureau 涉外分局
hold the line 请稍等 (电话用语) subsidy 补助金，津贴
allowance 津贴， 补偿
be reimbursed for the actual expense 实报实销
move house 搬家
in the course of 在……的过程中
leave office 去职， 离职
in the name of 以……的名义
on business 出差
fare 车费， 船费
lodging fee 住宿费
home leave 探亲
expatriate 居于国外之人， 侨民