04-08-2004, 12:11 AM
Hi
First of all I shall like to request all users of this forum to always mention the tax system they are referring to i.e UK or Pakistan, as ACCA students are mostly asking about UK tax.
As regards to your queation, let me remind you that bonus is not at all a tax planning tool, it always increases tax liability when evr paid in cash. However if you are in start or in middle of a tax slab, only then its useful.
More attractive option for employees is share option, as it is not taxable.
Please be more specific in your requirement to let me answer your question in greater depth.
Aamer Sikandar
First of all I shall like to request all users of this forum to always mention the tax system they are referring to i.e UK or Pakistan, as ACCA students are mostly asking about UK tax.
As regards to your queation, let me remind you that bonus is not at all a tax planning tool, it always increases tax liability when evr paid in cash. However if you are in start or in middle of a tax slab, only then its useful.
More attractive option for employees is share option, as it is not taxable.
Please be more specific in your requirement to let me answer your question in greater depth.
Aamer Sikandar
