Non-cash benefits exempted from PAYE tax for employees

9 February 2023 09:34 am Views - 809

• Basic salaries will be taxed
• Fuel allowance which was 100% taxable has been reduced to 25%. Interest benefit on loans given by employers on subsidized interest is not considered for tax
• Non-cash benefits such as for vehicles, fuel allowances exempted
• Medical benefits which have been provided to employees exempted
• The circular calculates an employee’s gains and profits from January 01, 2023

 A circular has been issued by the Inland Revenue Department exempting employees from paying PAYE tax on non-cash benefits such as for vehicles, fuel allowances, housing and medical benefits which have been provided to employees at their places of employment.  This circular has been issued by the Commissioner General of Inland Revenue Department on the instruction of the Secretary to the Ministry of Finance, Economic Stabilization and National Policies yesterday.  The circular calculates an employee’s gains and profits from January 01, 2023. 

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