IRD issues circular on non-cash benefits provided to employees

 

A circular has been issued revising the amount of non-monetary benefits provided to employees, including vehicle, fuel allowance, housing, communication and other benefits, which will be taken into account while charging tax paid.

The Inland Revenue Department (IRD) through this notification published on Tuesday (February 07) has revoked the previous Circular No. SEC/2022/E/05 dated December 22, 2022.

Accordingly, the circular has revised the value of any housing non-cash benefit provided by the employer to 12.5% ​​of salary.

Personal use (partial) of any car provided by the employer is worth Rs.20,000 to Rs.50,000 and Rs.75,000 for vehicles with engine capacity of 1800cc and below 1800cc respectively.