Thank you for joining us. The focus for today's #PwCTaxChat is: 'LIRS’ Notice on Taxation of Employee Loans - What you need to know':
LIRS believes that certain benefits in kind, particularly loans granted to employees, have not been disclosed to LIRS by employers as such, they have not been subject to tax. To plug this hole in the tax net, LIRS issued a public notice on Taxation of Employee Loan. #PwCTaxChat
Employee loans are given by employers to employees to be paid back at a specified time. These loans may be interest free or at reduced interest rates. These loans are usually paid back from the employee’s net salary. #PwCTaxChat
Interest free loans or loans with a reduced interest rate are benefits to employees given that the interest is not at commercial rate. #PwCTaxChat
According to section 3(1)(b) of PITA any salary, wage, fee, allowance, gain, benefit, bonus or compensation should be subject to tax. Therefore, employees should be subject to tax on benefits arising from employee loans. #PwCTaxChat
