accommodation - 05/29/00
Question
I received 20000 housing allowance a month and pay 14000 for renting a flat, how should I fill in the tax form?
Answer
Rent paid or reimbursed by employer is not taxable under S.9(1A)(a), but the rental value shall be included in assessable income of the employee.
Rental value is calculated as follows:-
Employee's net assessable income x 4% or 8% or 10%* (*stands for the room/flat provided: 4% if one room in hotel, 8% if two rooms, 10% if a flat)

You have to distinguish between rent paid or rent reimbursed by an employer from an allowance. If an employer pays to the employee a sum termed rental allowance, the allowance is taxable in full. You must clarify the amount you mentioned is housing allowance or rent reimbursed by your employer.