Meal allowances to employees vary among companies. Meal allowances include:

• Reimbursement based on actual expenditure, that is, amount given based on amount spent within a certain limit.
• A fixed meal allowance given to the various types of employees, for example, a fixed amount for managers and another fixed amount for operators.

This process shows the calculation of taxable meal allowance.

For more information, see Tax section of the Implementation Guide (IMG).

The following process describes how meal allowance is read and stored for tax calculation.

1. The system reads the amount of meal allowance from data created in infotype and cumulated to wage type /125 (Total meal allowance).
2. This amount is compared to the taxable rates set in the Payroll Constants table (V_T511P).
3. If the total meal allowance is less than the tax amount, the employee does not need to pay tax. If the total meal allowance is more than the minimum tax amount, the taxable amount is calculated and stored in wage type /124 (Total taxable meal allowance).
4. Run payroll driver to see the results.

The system compares regular meal allowance with the taxable meal payment. For example, according to current tax regulations, the tax free meal allowance for each employee is NT$1,800 each month. Some companies may provide the NT$1,800 tax free meal allowance to employees. If your company provides a meal allowance over NT$1,800, the difference is taxable, as shown below: