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Taxable income?

Employee A took a business trip to England for 8 days. Employer B paid his air ticket, accommodation and meal expenses. At the end of the business trip, he extended his stay for 3 days for sightseeing. Employer B also paid additional accommodation and meal expenses for these 3 days. Whether the additional accommodation and meal expenses were taxable as Employee A's income?

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Sun Li
 

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Where a trip is taken partly for business and partly for holiday, the IRD will look at the immediate purpose of the trip and will refrain from taxing the benefit if the holiday element is merely incidental to a business trip. However, in cases where a clearly identifiable part of a journey is taken for holiday purpose, the expenses relating to that part of the journey will have to be ascertained and will be assessed as income of the employee. In the above scenario, the cost of additional accommodation and meal expenses for those 3 days should be taxable.

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Ceci
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