What Is Imputed Income?

Imputed income refers to a portion of an employee’s income, such as certain social benefits, that can be subtracted from total income for tax purposes.

What Are Some Examples of Fringe Benefits Subject to Income Imputation?

Examples of fringe benefits subject to income imputation generally include:

  • A company car
  • An employee discount
  • Reimbursement of expenses (training costs, childcare costs, public transport, etc.)
  • Insurance

For What Purposes Can an Employee’s Income Be Imputed?

Imputation of an employee’s income is used to collect income tax for the government. Income can also be imputed to provide tax relief for employees.

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