Fair Share Contribution with Tax on Tax

Below is a PAYE Calculation Checklist including the Fair Share Contribution where the Tax Benefit is applicable. Please refer to the respective Illustrations, which help to verify the breakdown of the PAYE Calculation Checklist.

→ 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
Step 1: Check the Emoluments for the month, for example: Salary
Step 2: 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.
Manually calculate the emoluments and chargeable income (exclusive of tax benefits) for the purpose of verifying the PAYE and FSC (both exclusive of tax benefits)

Excel illustration

Excel illustration Tax PAYE calculation (exclusive of tax benefits)

PAYE Calculation Checklist illustration Step 3

Excel illustration Tax FSC calculation (exclusive of tax benefits)

PAYE Calculation Checklist illustration Step 4

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

→ Use the Total Tax charged exclusive of tax benefits 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