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Thread: PAYE calculation on a Foreign Employee

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    PAYE calculation on a Foreign Employee

    Hi,

    Please can I ask for assistance.

    We are thinking of employing a foreigner from Europe.

    He will potentially be taking up a senior role in the company.

    His cost to company is being negotiated.

    Question, what would be the following monthly PAYE impact?

    - Provident Fund - He will remain with his European provident fund which is also non taxable - My question, what impact does this have on his monthly PAYE? As a portion of his monthly salary will be used to pay towards this foreign provident fund.

    - Housing - The company is considering renting a property for him - My question - Impact on PAYE calculation?

    - Company Car - The company is considering renting him a car which he will use for business, but also to and from his place of residence - My question, Impact on PAYE?

    Thank you.

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    Any thoughts from anyone?

  3. #3
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    In general PAYE is only concerned with taxable monthly income not total salary. Any employment/fringe benefits thus influences the PAYE calculation, it's only quality of life type payments like pension/annuity/etc or medical that do not influence it. Though I might be wrong in my understanding.

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