According to State Taxation Administration of The People's Republic of China's Notice on Individual Income Tax in subsidy income Obtained by Individuals Due to the Reform of the Official Car System (Guoshuihan [2006] No.245), the income paid to employees in the form of cash and reimbursement due to the reform of the official car system is regarded as an individual's acquisition of official car subsidy income, and personal income tax is levied according to the item of "income from wages and salaries".

The specific tax calculation method shall be implemented in accordance with the relevant provisions of Article 2 of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Relevant Policy Issues concerning Individual Income Tax (Guo Shui Fa [1999] No.58), "On Taxation of Individuals Obtaining Official Traffic Communications in subsidy income".