My company has sent me overseas for studies with full pay for a year. I also receive an allowance for all my expenses overseas (accomodation, food, transport ...etc). My first question: Should I declare all the allowance received while I was overseas? My second question: Can I claim for taxes that my employer has paid from my salary while I was overseas?
If you are earning a salary - even if it is for time off - then you will still have to pay taxes on those earnings, however there are sections within the tax act that then allow for this income to be exempt from tax provided you meet the criterion -
The allowance received will be subject to certain exempt amounts, a per day allowance, but you will have to pay tax on the difference. If your employer is paying for your studies you may be subject to tax on this as well. However they will provide you with an IRP5 for all of this. Your actual salary as mentioned above will most likely be tax exempt if you meet the requirements.
TaxTimsays: 20 June 2013 at 12:37
Only a pleasure!
Get Tax Deadline Reminders, News and Tips
We'll tell you when you need to file, along with tax tips and updates.