Benefit allowances can cover expenses such as meals, accommodation, and travel. These allowances may be provided to both employees and contractors.
Accommodation Allowance
Generally, accommodation allowances are considered taxable, meaning deductions are not allowed. However, in certain circumstances, they may be tax-exempt.
Meal Allowance
A tax exemption is available for the full amount of meal payments, including reimbursements and allowances, when an employee is far from their normal work location on business.
Travel Allowance
Travel allowances are tax-free if there is a temporary change in the workplace.
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