At times companies provide uniforms for their employees and when such is the case, employees are at times taxed on that benefit and sometimes exempt.
The deciding factor here according to section 16(p) of the Income Tax Act is whether the uniform in question is a special kind of uniform which is clearly distinguishable from ordinary clothing, and the employee is required or mandatory to wear such at work.
Another thing to consider is whether the value of any such uniform given to the employee, or so much of any allowance to buy a uniform is reasonable to be for a uniform or not.
When it so fits that such a uniform is required, it is clearly distinguishable from ordinary wear and the value is reasonable – then such a benefit or allowance is exempt from Income Tax. If it so happens that it does not satisfy the above criteria, then the employee would be taxed on the value of such uniform or the allowance given to buying the uniform.
– Update by Lazarus Amukeshe, Hdip Tax
