For Singapore tax purposes, housing is dealt with separately, which I will deal with in a moment. For every other kind of assistance, the dollar value of the perk is simply treated as income. Tuition allowances, health insurance payments, everything... is income and taxed at regular rates. If your employer pays your taxes, that is taxable income as well. If you employer pays for your club membership that cost of the membership is a taxable benefit to you.stillwater wrote:Hi, I am trying to find out how one deals with taxes on housing or tuition allowances that a company pays you, since that amount is calculated towards your total taxable income? Do companies provide some kind of adjustment or offset your tax liability?
I am trying to negotiate my package and want to make sure everything is considered. Thanks for our advise.
http://www.iras.gov.sg/irasHome/uploade ... %20TOT.pdf.stillwater wrote:If they compensate the tax liability and add that to my base compensation, then it will just increase my taxes. So is there some way for them to pay for the taxes? Does anyone have experience with that?
As Hidy mentioned, every company and every negotiation is different. As others have mentioned, just adjust your salary requirements upwards to cover the additional expected taxes on the ongoing allowances.stillwater wrote:Hi Hidy Ho, yes agree that in the grand scheme of things it could be adjusted and that is what i am trying to understand. I just don't want to be in a situation where I end up paying taxes from my pocket.
I agree with some comments that tax is levied on income and if I have income I have to pay taxes, but in case of allowances, it is a cost that I don't have today and want to make sure it is calculated somewhere.
Thanks for your comments.
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