Which kind of subsidy can be exempt from tax
Tax official： This is the foreign tax bureau.
Taxpayer： This is George brown from ABC company. I“d like to speak to Mr. li.
Tax official： Hold the line， please.
Mr. Li： Litong speaking. How can I help？
Taxpayer： I have a question to consult with you. Is the subsidy subject to personal income tax as salary ？
Mr. Li： Different from the salary， there are many exemptions in subsidy for the foreigners.
Taxpayer： Can you explain it in detail？
Mr. Li： The housing， meal， and cloth washing allowance are exempt， provided they are not paid by cash and the amount is in proof of invoice .
Taxpayer： What about the housing transfer allowance happened in the course of entering or leaving office？
Mr. Li： It could be exempt on the base of the amount actually happened. Nevertheless it is not considered reasonable that the money is paid every month in the name of housing transfer.
Taxpayer： How about the allowance of trip on business ？
Mr. Li： It could be exempt also， if you provide the accurate documentary evidences to the fares and lodging fees， and present the stipulation of your company about the trip on business.
Taxpayer： Does that include the allowance of trip abroad？
Mr. Li： yes.
Taxpayer： Is the home leave fare subject to tax？
Mr. Li： the home leave fare is exempt， provided you present the evidence to the fare happened by expatriate himself ，and both the amount of fare and the frequency every year are considered reasonable by the tax authority .
Mr. Li： If the above expenses happen within china and the amount is reasonable， it can be exempt.
Taxpayer： Thank you for your help . Bye for now .
Mr. Li ： Bye .