Employees Tax

[*A*]

Staff participate in a competition and winners are chosen by lucky draw

Is the prize money taxable, and would it make a difference if they receive an asset and not money?

[geraldenek]

Whether it’s an asset or money they will still be taxed in the month received.

The assets will be taxed on the market value when received by the employee.

Employees' tax must be deducted in the month during which the employee acquires the asset. If the amount of employees' tax to be deducted is excessive in relation to the employee’s remuneration for that month, the deduction of the tax in respect of the benefit may be spread over the balance of the tax year during which the benefit accrued to the employee.

You will reflect this benefit under code 3801 on the IRP5 certificate.