HomeHome SearchSearch MenuMenu Our productsOur products

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.
 
*********** Advertisement ************
 
12 Taxable fringe benefits - are you taking advantage of all of them?

There are hundreds of companies out there that don't know which fringe benefits are taxable or they land up taxing the wrong percentage on them...

This kind of error could cost you thousands in penalties to SARS if it catches you out – and it will!
 
***********************************
 
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.
 


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>