Supplemental Employee Heating Charges Hit Investors in Liaoning

by Adam Livermore, Senior Associate, Dezan Shira & Associates

In the past, this charge was generally paid on behalf of workers by the State-Owned Enterprises who provided the accommodation for their staff. However with the breakdown of this system and widespread ownership of apartments by the general population, the issue of who should pay for heating charges has been a hot topic.

Last year on 30th September the Dalian Municipal Government issued a notification based on Liaoning Province Public Heating Management Regulations. The document states that companies based in Dalian are required to pay both their current and retired employees a heating allowance. In 2005 the allowance was supposed to be paid as a lump sum, calculated based on the specific rank of each employee.

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This article included in China Briefing Magazine
January / February 2007: INDIVIDUAL INCOME TAX IN CHINA	Other articles in this issue: China's End-of-the-Year Economic Work Conference Prioritizes 'Going Global' and Increased Imports Strategies for 2007 by Sumita Ghosh, Senior Researcher, Investment Intelligence Unit, Dezan Shira & Associates Annual Licensing & Renewals in China by John Zhang, Senior Financial Auditor, Dezan Shira & Associates