Hi expats,
Any expat here got taxed monthly for the accomodation/utilities paid by their employer?
Apparently, based on the goverment website, accomocation/utilities borne by the employer are considered as emoluments and therefore, taxable.
For example;
Monthly pay (say Rs60,000)
+ Monthly rental paid by employer (say Rs25,000)
+ Monthly utilities paid by employer (say Rs15,000)
= Chargeable income of Rs100,000.
Hence, monthly income tax payable is Rs15,000 (at 15% tax rate over chargeable income) & the net pay/take-home cash is only Rs45,000 (Rs60,000 - Rs15,000 tax)!
Not sure if this rule is strictly enforced here cause if it does, it is going to cut down the take-home cash..
It would be nice if only 15% is deducted, i.e. (Rs60,000 - 15% = Rs51,000).
Please share your experience here, thanks