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Great news: There's a new taxable fringe benefit you can claim

by , 26 August 2014
We're sure you've heard us talk about the 12 taxable fringe benefits your employees will have to pay tax on.

Today, we're excited to tell you about a 13th!

It's important to ensure you're up-to-date with this new company benefit your employees must pay tax on or you could both face penalties.

Read on to discover what this new taxable fringe benefit is, so you can ensure you correctly withhold your tax for this benefit...

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Here's the 13th taxable fringe benefit

As we mentioned before, these are the taxable fringe benefits
1. Giving the employees an asset to use for a price that's lower than its value;
2. Letting your employee use a company asset;
3. Letting your employee use a company car for his private use;
4. Providing your employees with free meals, refreshments, or meal vouchers; 
5. Providing your employees with free or cheap accommodation;
6. Providing your employees with free or cheap services;
7. Providing your employees with low interest or interest-free loans;
8. Providing your employees with subsidies;
9. Paying a debt on behalf of an employee;
10. Paying for your employees' medical expenses; 
11. Paying medical aid contributions on behalf of your employee; and
12. Giving your employees' relatives some benefits.
These are the taxable fringe benefits. But now, your employees will also pay fringe benefit tax if:
13. You contribute towards an insurance policy on his behalf.

Here's how the tax on this fringe benefit will work

Your employee will pay fringe benefit tax on 3.5% of the amount of the contribution you make each month.
So if you contribute R5 000 towards a life insurance policy for your employee, he'll pay R175 in tax each month.
So ensure you remember to withhold this tax if you give your employee this benefit.

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