Article 4 of the Individual Income Tax Law of People's Republic of China (PRC) (Presidential Decree No.9) stipulates that the following personal income shall be exempted from individual income tax:

(four) welfare funds, pensions and relief funds;

Article 11 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China (Guo Decree No.707) stipulates that the welfare expenses mentioned in Item 4 of Paragraph 1 of Article 4 of the Individual Income Tax Law refer to the welfare expenses retained by enterprises, institutions, state organs and social organizations or the living allowances paid to individuals in accordance with relevant state regulations;

The Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Determining the Scope of Living Allowance (Guo Shui Fa [1998] 155) stipulates that the living allowance paid to individuals from welfare funds or trade union funds as mentioned in the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China refers to the fact that certain events or reasons have caused certain difficulties to the normal life of taxpayers or their families, and their work units have drawn it according to state regulations.

To sum up, it can be seen that women's day enterprises distribute in-kind benefits to female employees, which is not a temporary subsidy for sexual difficulties and should pay a tax.