Tax Paid by Employer

Tax treatment of taxes paid by employer as a benefit to employees. The full or partial amount of the employee's income tax may be paid by the employer.

Tax Treatment of Tax Paid by Employer (Summary Table)

NatureTaxable/ Not taxable

1

Full or part of the employee's income tax is paid by the employer

The benefit is taxable. A tax-on-tax will be computed.

Indicate "Yes" under item f) of the Form IR8A. Where only part of the tax is paid by employer, state the items which the employer is paying tax for.

See Tax-on-Tax Examples.

2

Fixed sum of tax allowance regardless of actual tax

Taxable

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