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Three tax-free assets you can give to your employee as a benefit

by , 14 August 2014
Let's say, for example, Joe needs a computer to do his work. He also needs to work at home from time to time. Unfortunately, he can't afford a laptop, so you give him a company one to use.

This is a company benefit and such benefits come with tax.

But just because a company laptop will always be a taxable fringe benefit, it doesn't mean there aren't others you can give him that are tax-free. Today we reveal three such assets listed by the Practical Tax Loose Leaf Service...


Here are three assets you can give your employees completely tax-free

1. If you give your employee an award for bravery, it's tax-free as long as it's limited to R5 000 during that year of assessment. If you give your employee a monetary award that exceeds R5 000, he'll pay fringe benefit tax of the excess.
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2. If you give your employee the use of your company car he'll pay tax on this employee benefit, but he won't pay tax on any fuel or lubrication he needs to run the car.
3. If you give your employee a long service award, he won't pay tax on it. The same rule applies to this award that applies to the bravery award. This means if you give your employee more than R5 000 he'll pay tax on the extra. But don't forget that this tax exception only applies to an award you give to an employee who's been with you for more than 15 years.
There you have it! While you can't give your employee that computer tax-free, you can reward him and give him petrol with no extra tax.

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