Stop forking over 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.
Which are taxable fringe benefits and which aren't
According to the Practical Tax Loose Leaf
, if you provide your employees with a pension fund, you can claim that as a business tax deduction. This is one of the few benefits that falls outside the tax line as a tax benefit.
But if, on the other hand, you are paying their medical aid contributions, SARS will tax that.
This is why it's so important for you to check which benefits SARS will tax and which it won't.
To make sure you don't get confused, here are the 11 other fringe benefits SARS will tax.
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11 taxable fringe benefits
According to SARS you need to add the amount to your employees' taxes if you:
1. Give the employees an asset to use for a price that's lower than its value;
2. Let your employee use a company asset;
3. Let your employee use a company car for his private use;
4. Provide your employees with free meals, refreshments, or meal vouchers;
5. Provide your employees with free or cheap accommodation;
6. Provide your employees with free or cheap services;
7. Provide your employees with low interest or interest-free loans;
8. Provide your employees with subsidies;
9. Pay a debt on behalf of an employee;
10. Pay for your employees' medical expenses;
11. Pay medical aid contributions on behalf of your employee; and
12. Give your employees' relatives some benefits.
If you provide any of these 12 benefits, your employees will pay more tax. And they may not be very happy about it. So check before you give them an employee benefit that may end up costing them more.