Want to give your employees meals and refreshments, but are worried the value placed on this perk will attract tax?
If, so, you'll be glad to know there's a way to give your staff meals and refreshments, tax free!
Here are the three instances where there's no fringe benefit tax on any meal or refreshment:
According to the Practical Tax Loose Leaf Service, there's no fringe benefit tax on any meal or refreshment:
#1: You supply to your employees in any canteen, cafeteria or dining room operated by you or on your behalf.
#2: You supply to your employees during business hours or extended working hours or on a special occasion.
#3: If food and drink is enjoyed by your employee in the course of providing a meal or refreshment to any client the employee is required to entertain on your behalf.
Warning: Don't assume all staff meals and refreshments are tax-free. Make sure they meet these requirements first.
If you're confused about when fringe benefits are taxable and when they aren't? Read this.