Taxation of Lump Sum Accomodation Allowance

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sanderspc

Newbie

Joined: June 25, 2004
Posts: 4

Status: Offline

Posted: July 19, 2004 - 10:12 AM
Post subject: Taxation of Lump Sum Accomodation Allowance

Hi All

Does anyone have any experience with how lump sum accomodation allowance amounts are taxed in Shanghai? Based on my research of the apartment market, the amount being offered in my package is satisfactory before tax, but after tax it is not.

I have not found any information on this elsewhere in postings. Can anyone offer me any advice?

Am I better off getting my company to pay for it directly if possible?

Thanks

shanghaisimmo

Lurker

Joined: June 17, 2004
Posts: 27

Status: Offline

Posted: July 19, 2004 - 12:29 PM
Post subject: Tax Evasion on Accomodation Subsidy

I was under the impression that some companies like to dish out large amounts of money for 'accomodation' and give less salary...the reason being that the accomodation allowance is not taxed...or at least not nearly as much. Maybe I am wrong on this...but perhaps your company wants to trick you into paying tax on the allowance and then they keep it.