Circular of the State Administration of Taxation on Issues concerning the Tax Treatment of the Drawing and Use of Housing Provident Fund by Foreign-Invested Enterprises and the Employees Thereof

Circular of the State Administration of Taxation on Issues concerning the Tax Treatment of the Drawing and Use of Housing Provident Fund by Foreign-Invested Enterprises and the Employees Thereof
Circular of the State Administration of Taxation on Issues concerning the Tax Treatment of the Drawing and Use of Housing Provident Fund by Foreign-Invested Enterprises and the Employees Thereof

Guo Shui Fa [1994] No.165

July 26, 1994

In accordance with the uniform planning of the State Council, measures for the implementation of the housing system reform have been published one after another in various regions. The issues concerning tax treatment of the drawing, receiving and use of various housing subsidies or housing provident fund by foreign-invested enterprises (hereinafter referred to as enterprises) and the employees of the Chinese party (hereinafter referred to as individuals) are hereby clarified as follows:

I. The tax treatment of the drawing of various housing subsidies or housing provident fund (including voluntary housing provident fund) by enterprises and individuals in accordance with relevant stipulations as set forth in the national or local housing system.
1. In regions where the housing system reform has not been carried out, the housing subsidies drawn by enterprises in accordance with the original stipulations of financial departments and labor departments may be regarded as the deducting items for calculating the enterprise's current taxable income and be itemized in the current cost expenses.
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