Your weekly dose of tax knowledge - become tax savvy in just 2 minutes!
Q: Is the medical allowance given to staff need to be recorded in the staff's Form EA?
A: Fixed medical allowances received on a monthly or yearly basis regardless of it being utilised by an employee are a form of perquisite and are considered as taxable income of the staff. Thus, it is required to be included in the staff’s Form EA.
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru