IRAS | Tax Borne by Employer

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

On this page:

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. 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 employer	Taxable

Nature

Taxable/ Not taxable

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.

A fixed sum of tax allowance is provided by the employer

Taxable