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COVID-19 Government Grant / Payouts to Businesses and Individuals

Updated: Jun 17, 2023

Government grants and payouts related to COVID-19 can have varying tax treatments depending on their nature and purpose. While specific exemptions may be granted to certain payouts or grants, it is important to note that not all COVID-19-related grants or payouts are automatically exempt from tax.

Government grant

Payouts may be considered taxable income if they are given to supplement trading receipts, defray operating expenses, or compensate for loss of income or business disruption. These grants or payouts are typically treated as revenue receipts and subject to regular income tax rules.

Certain COVID-19 government grant / payouts to businesses and individuals payouts below are not subject to taxation either due to specific exemptions granted or because they do not qualify as taxable income:

Non taxable government grant

The following payouts are taxable as they are classified as revenue receipts of a business, according to the general income tax rules:

Taxable government grant

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