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.
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:
The following payouts are taxable as they are classified as revenue receipts of a business, according to the general income tax rules:
Looking for Tax Professionals or Accountants? Averie can help! Contact us now for more information.
Comments