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	NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON EXEMPTING THE HONG KONG OR MACAO HOUSING SUBSIDIES RECEIVED BY FOREIGN INDIVIDUALS FROM INDIVIDUAL INCOME TAX

	(No. 29 (2004) of the Ministry of Finance, State Administration of Taxation promulgated on January 29, 2004 and shall be implemented as of January 1, 2004)


SUBJECT : INDIVIDUAL INCOME TAX; EXEMPTION; HKSAR/MSAR HOUSING SUBSIDIES
ISSUING DEPARTMENT : THE MINISTRY OF FINANCE OF THE PEOPLE'S REPUBLIC OF CHINA, STATE ADMINISTRATION OF TAXATION
ISSUE DATE : 01/29/2004
IMPLEMENT DATE : 01/01/2004
LENGTH : 397 words
TEXT :

Due to the geographical location of the Mainland's neighboring Hong Kong and Macao and the convenient transports, some foreigners who work in the Mainland enterprises choose to live in Hong Kong or Macao, they come and go between the Mainland and Hong Kong or Macao every working day. With regard to the question whether the housing, food and laundry subsidies given by the companies to the foreign individuals in non-cash form or in the form of actual reimbursement for actual costs can be exempted from the individual income tax in pursuance of the relevant provisions, we hereby clarify it as follows upon deliberation:

1. With regard to the foreign individuals hired by enterprises within China (excluding individual residents of Hong Kong or Macao) who live in Hong Kong or Macao for family or any other reason, come and go between the Mainland and Hong Kong or Macao, the housing, food, laundry and move subsidies given to them by the enterprises within China (including their connected enterprises) in non-cash form or in the form of actual reimbursement for actual costs may, if supported by valid voucher, and upon examination and confirmation of the competent tax organ, be exempted from the individual income tax in accordance with Article 2 of the Notice of the Ministry of Finance and the State Administration of Taxation on Several Issues concerning the Policy on Individual Income (No. 020 (1994) of the Ministry of Finance and the State Administration of Taxation ) and Articles 1 and 2 of the Notice of the State Administration of Taxation on Several Issues concerning the Implementation of Exempting the Relevant Subsidies Received by Foreign Individuals from the Individual Income Tax (No. 54 (1997) of the State Administration of Taxation.

2. Where any of the foreign individuals mentioned in Article 1 receives subsidies for the expenses of his (her) language training and children education in Hong Kong or Macao and can provide valid payment voucher and other materials, the subsidies determined to be reasonable by the competent tax organ upon examination shall be exempted from the individual income tax in accordance with Article 2 of the above-mentioned Notice No. 020 (1994) of the Ministry of Finance and the State Administration of Taxation and Article 5 of the Notice No. 54 (1997) of the State Administration of Taxation.

3. The present Notice shall be implemented as of January 1, 2004.