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Income Tax Treatment of Wage Subsidy Programmes

Updated: May 2, 2022

1. We would like to remind taxpayers who receive the grant and/or subsidy:

👉 to pay attention to how the grant and/or subsidy are treated

👉 since the Subsidy Wages that employers get under the Wage Subsidy Programs are a kind of government assistance.

2. Taxpayers are exempt from tax under the Income Tax (Exemption) (No. 22) Order 2006 (P.U.(A) 207/2006) for income received in connection with allocations made by the Federal Government or the State Government in the form of a grant or a subsidy.

👉 As a result, money received in the form of grants or subsidies through WSP would be tax-free.

👉 Any expenses related to this receipt are disregarded and are not allowed to be claimed from the business income. 🌼🌼🌼🌼🌼🌼🌼🌼🌼🌼🌼🌼🌼🌼 1. 需要提醒领取工资补贴的纳税人 [雇主]:

👉 雇主在工资补贴方案下所获得的补贴工资是由政府提供的一项援助。 👉 因此,税务上的处理,不得不注意 2. 根据2006年所得税 (豁免)(第22号) 指令 [P.U.(A) 207/2006],纳税人因联邦政府或州政府以赠款或补贴形式提供的拨款而获得的收入/补贴/援助,豁免纳税。

👉 因此,通过工资补贴方案收到的金钱援助是不被征税的。

👉 然而要注意的是,任何与该补贴有关的费用都将被忽视,也就是说不能从营业收入扣税。

Income Tax Treatment of Wage Subsidy Programmes - PDF

78. Income Tax Treatment of Wage Subsidy Programmes
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