From The Chinese Press

To tax or not to tax moon cakes

Before Mid-Autumn Festival, many companies give moon cakes or shopping vouchers to employees as holiday gifts. But such income is taxable and calculated as part of an employee's salary. Some media outlets, however, are asking why moon cakes should be taxable under the Individual Income Tax Law, says an article on xinhuanet.com. Excerpts:

Considering moon cakes and shopping vouchers as part of a person's income is in accordance with the Individual Income Tax Law. But people feel it goes against the tradition of giving gifts during festivals.