Be Aware of These 12 Taxable Fringe Benefits

Donʼt be caught napping when it comes to taxable fringe benefits. We will show you when fringe benefits are taxable and when they are not. Ensure that your payroll will stand up to a SARS audit.  

Try our complete Tax Loose Leaf Service risk-free for 14-days. As part of this service you’ll receive the Practical Tax Loose Leaf Service, three Bonus Reports, Regular updates, the Weekly Tax Bulletin, Online access to past Tax Updates and a Tax Helpdesk.

Be aware of these 12 taxable fringe benefits:

1. Taxable fringe benefit #1: If you give your employee an asset, it’s a fringe benefit
2. Taxable fringe benefit #2: Private use of employer owned assets
3. Taxable fringe benefit #3: Private use of a company car
4. Taxable fringe benefit #4: Free meals, refreshments or meal vouchers
5. Taxable fringe benefit #5: Free or cheap accommodation
6. Taxable fringe benefit #6: Free or cheap services
7. Taxable fringe benefit #7: Low interest or interest-free loans
8. Taxable fringe benefit #8: Employer subsidies
9. Taxable fringe benefit #9: Debt paid on behalf of an employee
10. Taxable fringe benefit #10: Medical aid fringe benefit
11. Taxable fringe benefit #11: Medical expenses incurred
12. Taxable fringe benefit #12: Benefits to relatives

Taxable fringe benefit #1: If you give your employee an asset, itʼs a fringe benefit

A taxable fringe benefit arises if you provide an employee with any asset for free or for less than its value. Such an asset could be in the form of goods, commodities, financial instruments or property of any nature (other than money). The cash equivalent of this benefit is the difference between the value of the asset given and any consideration paid for it (Paragraph 5(2) read with paragraph 2(a) of the Seventh Schedule). This amount  constitutes remuneration as defined and must be subjected to employees’ tax .
 

For more information on this taxable fringe benefit and the other 11 taxable fringe benefits order your copy of the Practical Tax Loose Leaf  risk free for 14 days.

But that's not all...

If SARS comes knocking at your door, are you 100% confident that all your books are in order?

When it comes to tax you need to make sure you know your rights and ensure you never pay too much tax or end up with penalties of as much as 200%. Just relying on your accountant or tax consultant could end up costing you hundreds of thousands of rands.

Try our complete Tax Advisory Service risk-free for 14-days. As part of this service you’ll receive the Practical Tax Handbook, three Bonus Reports, Regular updates, the Weekly Tax Bulletin, Online access to past Tax Updates and a Tax Helpdesk.

What you’ll discover in the Practical Tax Loose Leaf :

• 22 checklists to use in assessing your tax audit risk
• 13 items SARS will check during an audit
• 4 expenses SARS will target
• 11 questions SARS will ask you
• What to do when an assessment is issued
• Documents you must retain for your audit
• The risk areas on your balance sheet
• How to minimise your payroll risk
• The general checks in a Vat audit
• Real-life case studies
• What questions to ask when disputing an assessment