Gains or profits included in calculating income from employment

The employment income includes;

a)    payments of wages, salary, payment in lieu of leave, fees, commissions, bonuses, gratuity or any subsistence travelling entertainment or other allowance received in respect of employment or service rendered

b)    payments providing any discharge or reimbursement of expenditure incurred by the individual or an associate of the individual

c)     payments for the individual's agreement to any conditions of the employment

d)     retirement contributions and retirement payments

e)     payment for redundancy or loss or termination of employment

f)     other payment made in respect of employment including benefits in kind quantified in accordance to the prescribed rules

g)     other amounts as may be required to be included

 h)     annual director’s fees payable to a director other than a full time service director.



Gains or profits excluded from calculation of income from employment

The following gains or profits from employment are excluded in calculating income from employment:

(a) Exempt amounts and final withholding payments;

(b) On premises cafeteria services that are available on a non-discriminatory basis;

(c) Medical services, payment for medical services, and payments for insurance for medical services to the extent that the services or payments are -

(i) Available with respect to medical treatment of the individual, spouse of the individual and up to four of their children; and

(ii) made available by the employer (and any associate of the employer conducting a similar or related business) on a non-discriminatory basis;

(d) Any subsistence, travelling, entertainment or other allowance that represents solely the reimbursement to the recipient of any amount expended by him wholly and exclusively in the production of his income from his employment or services rendered;

(e) Benefits derived from the use of motor vehicle where the employer does not claim any deduction or relief in relation to the ownership, maintenance or operation of the vehicle;

(f) Benefit derived from the use of residential premises by an employee of the Government or any institution whose budget is fully or substantially out of Government budget subvention;

(g) Payment providing passage of the individual, spouse of the individual and up to four of their children to or from a place of employment which correspond to the actual travelling cost where the individual is domiciled more than 20 miles from the place of employment and is recruited or engaged for employment solely in the service of the employer at the place of employment;

(h) Retirement contributions and retirement payments exempted under the Public Service Retirement Benefits Act;

(i) Payment that it is unreasonable or administratively impracticable for the employer to account for or to allocate to their recipients;

(j) Allowance payable to an employee who offers intramural private services to patients in a public hospital; and

(k) Housing allowance, transport allowance, responsibility allowance, extra duty allowance, overtime allowance, hardship allowance and honoraria payable to an employee of the Government or an institution the budget of which is fully or substantially paid out of Government budget subvention.