Notification of Adjusting Allowance Standard of Business Trip to Other Countries Notification of Adjusting Allowance Standard of Business Trip to Other Countries than Permanent Working Country than Permanent Working Country (Huawei Corporate file [2005] No. 125)(Huawei Corporate file [2005] No. 125)

Has been approved and issued on May 20, 2005 and taken effect on June 1, 2005Has been approved and issued on May 20, 2005 and taken effect on June 1, 2005

AbstractAbstract

For a short time business trip to another country of employees employed by China and resident in China, the business trip allowance during the business trip is consistent with that of the destination country. The employee does not enjoy the meal allowance, transportation allowance, and secondment allowance of China any more.

For a short time business trip to countries other than the resident country of an employee employed by China but resident in a country other than China, the business trip allowance is consistent with that of the destination country. The employee does not enjoy the secondment allowance of his/her resident country any more.

Foreword

Page 1The English version is only for reference, in case of any conflict between the two versions, the Chinese version shall prevail.

Application of allowances for employees employed by China and resident in China

Allowance type Application mode

Secondment allowance

Applied by each department collectively

Allowance for overseas business

trip

1. Applied together with the traveling expenses for employees of Shen Zhen headquarters 、 domestic local employees 、 employees assigned to domestic offices of Global Technical Service Department

2. For those assigned to branch offices of Domestic Marketing & Sales Management Committee, applied collectively together with secondment allowance.

Allowance for business trip in China

1. Applied together with the traveling expenses for employees of Shen Zhen headquarters 、 domestic local employees 、 employees assigned to domestic offices of Global Technical Service Department

2. For those assigned to branch offices of Domestic Marketing & Sales Management Committee, applied collectively together with secondment allowance.

Food and transportation

allowance in China

Deducted directly from the food and transportation allowance(For details, refer to Slide 6 and 7)

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Application of allowances for employees employed by China but resident in a country other than China

Allowance type Application mode

Secondment allowanceApplied collectively and claimed in

China with taxes deducted in line with corporate regulations

Allowance for cross-country (including China) business trip or in the permanent

working country

Applied together with secondment allowance and claimed in China with no

taxes deducted

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Frequently Asked Questions (I)

Are the definitions of travel and secondment changed? Answer: No. No. The definitions of travel and secondment specified in Huawei Corporate file [2003] No.

229 are still applicable. An employee who is expected to assign to a same place on business trip for over three months shall

enjoy the secondment allowance of the destination place since the day of arrival. An employee who is expected to assign to a same place on business trip less than three months but

virtually stays over three months shall enjoy the secondment allowance of the destination place since

the fourth month.

Are travel allowances subjected to tax deduction? Answer: Travel allowances for the cross-country business trip or in the permanent working country

areare not subjected to tax deductionnot subjected to tax deduction.

Are secondment allowances subjected to tax deduction?Answer: Secondment allowances are subjected to tax deduction are subjected to tax deduction in line with corporate regulations.

What does it mean to take effect on June 1, 2005?Answer: It means that the allowances incurredthe allowances incurred since June 1, 2005 shall comply with the new

regulations.

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What standard is applicable to travel allowances on the day traveling in- transit?Answer: Follow the one with higher standard. That is, if an employee crosses between the permanent

working country and the destination country at the same day, the allowance standard is the one

with higher standard .

Does an employee employed by China but resident in a country other than China enjoy the travel

allowances for business trip to China? What is the standard? Answer: The allowances for business trip to China (not including Hong Kong and Macao) shall follow the

localization standard of China, that is, 10 USD/day.

Does an employee resident in a country other than China enjoy travel allowances of 10 USD/day when

he/she is on business trip to other cities within the permanent working country?

Answer: No. In addition, he/she shall not enjoy the secondment allowances of his/her permanent working

country. But he/she enjoys the travel allowances, which standard is consistent with the standard

of secondment allowance of his/her permanent working country without tax deducted.

Is the allowance standard for business trip to a place (including Hong Kong and Macao) other than China

together with customers or under a travel package (e.g. visit or exhibition) still 10 USD/day?

Answer: Yes, the standard is 10 USD/day.

Frequently Asked Questions (II)

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Frequently Asked Questions (III)

If employee A begins a business travel to another country from June 1 to June 25, does his/her working place need to be changed? When shall the working place be changed ?

Answer: 1. Yes, the working place should be changed regardless of the time length of the business

travel. Within two workdays prior to the business travel, the employee shall fill in the Working Place Change Application Form and submit it to the manager of the department for approval. Then the attendance recorder shall change the working place into the destination place since the first day of the business travel (June 1). During the business travel, the employee only enjoys the allowance for business travel to anther country rather than the food allowance in his/her resident country.

2. If the employee comes back for business temporarily, he/she shall fill in the Working Place Change Application Form within two workdays and submit it to the manager of the department for approval. Then the attendance recorder shall change the working place into the city where he/she is

in since June 26.

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Tips: 1. If the employee fails to feed back the working place change to the department

manager and the attendance recorder, any personal economic loss caused by the

working place information error shall be born by the employee.

2. Attendance section shall check the business travel information of all employees

regularly. If the period of claimed business trip dosen’t consist with the actual one, we

reserve the rights to investigate and affix the responsibilities.

The English version is only for reference, in case of any conflict between the two versions, the Chinese version shall prevail.

Frequently Asked Questions (IV)

If employee B comes back to the Longgang district from another country from June 1 to June 14, how to

calculate the allowance of this month?

Answer: The employee shall not enjoy the food allowance from June 1 to June. The food allowance

should be released from June 15 to June 30 (calendar days).

If employee C is assigned to another country from June 18, he/she does not enjoy the food allowance

from the same day in line with corporate regulations and his/her working place shall be changed into the

destination country. If he/she comes back temporarily for business during September 1 to 20, shall

his/her working place be changed into the city in China where he/she is in during this period? When shall

the working place be changed?

Answer: 1. The working place shall not be changed. A employee resident in another country shall not

have his/her working place changed if he/she returns China for business temporarily. Therefore, he/she

does not enjoy the food allowance but enjoy allowance for returning China on business.

2. When the employee comes back to China, the employee shall fill in the Working Place Change

Application Form and submit it to the manager of the department for approval. his/her working place

shall be changed into the city in China where he/she is in from the first day he/she comes back.

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