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Did you know: A depreciating asset means less fringe benefit tax for your employee?

by , 15 July 2014
You offer your employees benefits because you want to help them. This includes finding ways to reduce their fringe benefit tax.

There are lots of ways you could try do this, but we don't recommend you try most of them as they're illegal.

There is one totally legal way to shrink your employee's fringe benefit tax each year though and it's as easy as pie...

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Stop forking over thousands of unnecessary cash to SARS!
 
Be one of the first in the country to get access to the information that'll make sure you pay the least tax possible...
 
You can legally save your company thousands of rands in taxes on forgotten fringe benefits.
 
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Here's an easy and 100% legal way to shrink your employee's fringe benefit tax

 
When you work out fringe benefit tax, the first thing you need to calculate is the current value of the benefit. 
 
So let's say the benefit is an asset such as a car, a laptop or a house. Every asset depreciates and this means its current value is always changing.
 
This means, each year your employees can pay less and less fringe benefit tax
 
Here's how to apply this easy and legal tip to reduce your employee's company benefit tax...
 

Here's how to work out depreciation and the new fringe benefit tax

 
A company car for example, depreciates at 15% each year. So if the car's current value is R150 000, next year it'll be worth 15% less.
 
Your employee now goes from paying R5 250 in fringe benefit tax to R4 462.50.
 
And each year, the amount of employee tax drops. All you need to do is get the asset valuated every year to ensure you're taxing your employee correctly.
 
There you have it: It's easy to help out your employees. Now you can give them employee benefits they'll really benefit from and legally reduce the amount of tax they must pay each year too.
 

*********** Reader's choice  ***************
Avoid costly tax issues
 
Don't pay another cent on expensive tax consultant or lawyer fees
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