Digital 'red envelopes' from companies need to be taxed

According to some media reports, the State Administration of Taxation issued a notice to its provincial and city bureaus on July 28 - not confirmed or published by the administration on its website till Sunday - saying WeChat, Alipay or Weibo "red envelopes", digital "gift" money, will be taxed if they are transferred by enterprises to individual employees. Digital "red envelopes" transferred between individuals, however, will not be taxed. Comments:

It is easy to issue such a notice but hard to monitor the digital "red envelopes" given by enterprises to their employees. The Internet is a revolutionary invention for not only the industry but also the taxation authorities. But it has made it easier to evade tax, too. Tax abatement is a good way of promoting the growth of enterprises. Yet evading tax and tax abatement are two different things. Paying tax is the duty of all enterprises.

Southern Metropolis Daily, Aug 6