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Are there any tax benefits for a business corporation offering to pay for personal housing rent expenses for their executive directors separately in addition to a lower base salary?
The executive may want to draw a lower base salary and have accommodation provided by the corporation in order to keep himself in a lower personal income tax bracket.
Is this feasible and legal?
Thank you for your question. Employer-provided housing is a taxable benefit to employees. Payroll taxes will need to be deducted from the benefit in the same manner as salary paid to an employee. The taxable benefit is tax deductible for the employer. So I don't see a tax advantage.