Starting a new job in a new city often comes with employer support — from moving your belongings to providing temporary accommodation while you settle in.
But these benefits do not necessarily receive the same tax treatment.
This visual guide looks at the taxation of benefits provided by an employer to an employee on transfer, focusing on two common stages of relocation.
The Move
The first part of the guide looks at relocation-related benefits associated with moving to the new location, including:
- travel to the new city;
- transportation of personal belongings; and
- transfer-related or daily allowances.
The Initial Stay
The second part looks at employer-provided hotel accommodation after a transfer.
The tax treatment can depend on factors including the duration of the stay and the amount, if any, recovered from the employee.
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Key Takeaway
A relocation package can contain several different components, and each component may need to be considered separately for tax purposes.
The cost of moving an employee, allowances paid during the transition, and temporary accommodation are not necessarily treated in the same way.
The accompanying infographic provides a quick visual guide to these situations.
This resource is intended for general informational and educational purposes. The examples and explanations are based on the source material and should not be treated as personalised tax or legal advice. Tax treatment can depend on the applicable law and individual circumstances. Please consult a qualified tax professional for advice relating to a specific situation.