Tax treatment of income tax fully or partially borne by employer.
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Tax Treatment of Income Tax Borne by Employer (Summary Table)
|Nature||Taxable/ 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.
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 employer||Taxable|