Company housing is one of the most effective method to save taxes.
If the employee receives the salaries, employees needs to pay personal income tax. Rent allowance is also subject to the personal income tax.
However, if the company rent the house from the landlord, and rent to the employees at the low price, the employees do not have to pay personal income tax for the economic benefits from the company.
In addition, the company can treat the rent to the landlord as deductible expenses.
In summary, there are two tax benefits.
1. Company can recognize additional expenses for rent and reduce corporate income tax
2. Employees can live in the cheap apartments without paying additional tax