Tax treatment of income tax fully or partially borne by employer.

Tax Treatment of Income Tax Borne by Employer (Summary Table)

NatureTaxable/ Not taxable
1 Employee's income tax is fully or partially borne by the employer

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

Indicate "Yes" under item f) of the Form IR8A. If tax is partially borne by employer, state the amount of income for which tax is borne by the employer.

Please refer to Examples on how to compute tax-on-tax (PDF, 313KB) for details.

2 A fixed sum of tax allowance is provided by the employerTaxable