Source: CCTV.com

03-02-2007 17:10

China has started to tax on welfare-oriented housing subsidies offered to employees who buy lower-than-the -market-standard houses from their employers.

The State Administration of Taxation and the Ministry of Fiance has jointly issued a statement, introducing the tax in March, imposed where employees buy houses from their employers at much lower prices that are usually under the employers' purchase prices or even the construction costs. The margin between the market price and the real payment is to be considered as part of the employee's income, which is subject to be taxed.

Dong Pan, dept. director of Beijing Normal University, said "Subsidies offered to employees buying apartments can be treated as other forms of bonuses paid to their staff. Therefore the favorable policies should be imposed with taxes."

Editor:Du Xiaodan