Is housing allowance part of one's income?


#1

We are told by our boss, that our housing allowance is part of our income and that we are to be taxed on it. Is this true?


#2

That’s pretty normal in most countries. Any benefits are added to your salary, resulting in the taxable income. The tax will be calculated from there and then deducted; as well the amount of the (non-financial) benefits is taken off, resulting in your payable income.

This applies to housing, company car (based on rent/fuel per month etc.), bonus, ex-gratia or any other benefits.