According to the Rule on the Implementation of Collection of Individual Income Tax issued by State Administration of Taxation, subsidies that a company offers to its employees, including transportation subsidy and communications subsidy, are all subject to personal income tax after a certain amount is deducted as a public affairs cost.
The rule states that salaries and stipends, which include bonuses, incentive payments and subsidies, are all subject to personal income tax. In addition, companies should include insurance, excluding tax-free insurance, into employees' salaries when they pay it to the insurance company.
The rule states that employees also need to pay personal income tax for the subsidies they receive to cover their parking fees.
However, the rule is not described as a compulsory one, for now.
