============Fair Share Contribution with Tax Benefit===============

  * Below is a PAYE Calculation Checklist including the Fair Share Contribution where the Tax Benefit applies. 
  * Please refer to the respective Illustrations, which provide a detailed breakdown of the calculation. 
  * The illustration steps indicate the order in which the calculations and figures should be verified.



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  *  → Check the **Pay Period**: In this example, the PAYE Calculation Checklist is for the month of **February 2026**
  *  → Check the section **“Your PAYE Particulars”** : In this example, the employee **has submitted an EDF in August 2025** and **enjoys a tax benefit (when his tax liability is borne by his employer). This tax benefit is treated as a fringe benefit**
  *  → Check the **Emoluments for the month**, for example: Salary
  *  → Check the **Total emoluments paid in previous months** , which in this example, it refers to the emoluments from August 2025 to January 2026, since the PAYE Calculation Checklist is for the month of February 2026.
__**  Verification of Tax benefit** __
  *  → **Manually calculate the emoluments and chargeable income (exclusive of tax benefit) **

Excel illustration

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  *   → **Verify the tax (PAYE and FSC) exclusive of tax benefit**

Excel illustration Tax PAYE calculation (exclusive of tax benefit)

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PAYE Calculation Checklist illustration Step 3

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Excel illustration Tax FSC calculation (exclusive of tax benefit)

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PAYE Calculation Checklist illustration Step 4

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Excel illustration Total Tax (PAYE and FSC) exclusive of tax benefit

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  *  → **Use the Total Tax charged (exclusive of tax benefit) to verify the additional tax (PAYE and FSC) payable on the tax benefit**:
  *  → ** That additional tax payable, tax borne by the employer, becomes itself a tax benefit on which the additional tax payable is calculated again. The process is repeated until the additional tax payable is near zero**

Excel illustration Tax charged on PAYE benefit

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PAYE Calculation Checklist illustration Step 5

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Excel illustration Tax charged on FSC benefit

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PAYE Calculation Checklist illustration Step 6

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Excel illustration Total Tax (PAYE and FSC) benefit

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PAYE Calculation Checklist Step 7

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  *  → **Add the Tax Benefit (PAYE and FSC) to the emoluments for the purpose of calculating the chargeable income (inclusive of Tax benefit)**

Excel illustration

{{:spay:hrmsprocguide:step_8_add_tax_benefit_to_emoluments_calculate_chargeable_income.png|}}

PAYE Calculation Checklist illustration Step 11

{{:spay:hrmsprocguide:chargeable_income_inclusive_of_tax_benefit.png|}}

  *  → **Use the chargeable income (inclusive of tax benefit) to verify the tax (PAYE and FSC) inclusive of tax benefit**

Excel illustration Tax (PAYE) inclusive of tax benefit

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PAYE Calculation Checklist illustration Step 12

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Excel illustration Tax (FSC) inclusive of tax benefit

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PAYE Calculation Checklist illustration Step 13

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  *  → **Verify the Total tax withheld in previous months and **
  *  → **Verify the Tax to be withheld in the month**

Excel illustration 

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PAYE Calculation Checklist Step 14 and 15

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