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23 Relocation costs you don't have to pay tax on

by , 16 March 2015
If you've ever had to set up a new office you'll know what a nightmare it can be. There's negotiations of the lease price, dealing with phone companies, liaising with painters, electricians, etc.

So I bet the last thing on your mind is the tax consequences you'll face if you relocate your staff to the new office! The cost of moving your staff could be bad enough as it is. Now you have to pay tax on top of it?

The good news is you don't have to. We've found a heap of relocation costs that won't cost you a cent in tax...

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Legally pay less tax
There are 139 reasons SARS doesn't want you to see this

Three international relocation expenses that are tax-free
1. Visas;
2. Passports; and
3. Inoculations.
Transportation costs you don't have to pay tax on 
4. Travelling expenses for your employee and members of his immediate household (if applicable);
5. Travel insurance;
6. Meals and incidentals your employee will need during his travel;
7. Removal costs of furniture;
8. Temporary storage of personal effects if required during transit; and
9. Insurance cover for personal effects during the time of removal and temporary storage.
Temporary accommodation
10. Hotel or rental accommodation for your employee and his family members; and
11. If you own property in the region you're relocating your employee to, you can deduct any costs you incur for your property during this time. 
Tax free costs on the old and new residences
12. Agent's commission paid on sale of previous residence;
13. Bond cancellation costs for an existing home loan;
14. Costs relating to the issue of an electricity compliance certificate;
15. Compensation payable for early termination of a lease;
16. Conveyancing fees;
17. Transfer duty for the new residence;
18. Bond registration costs for a home loan taken out to buy the new residence;
19. Municipal connection fees and/or deposits for electricity, water or gas.;
20. Telephone installation costs;
21. Cost of curtains for the new residence;
22. Replacement of children's school uniforms; and
23. Costs of re-registering vehicles.
But if you pay a settling in allowance to cover these costs, make sure it doesn't exceed one month's salary.
So as you can see, there are some definite bonuses of relocating your staff you can implement if you have to move offices and relocate staff. 

P.S. If you want to know off up to R445 000 off your tax bill, simply click here...

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