It is common practice for employers to offer more than just a normal salary to employees.
With various fringe benefits and allowances on offer to employees, impacting their remuneration and the taxation thereof, it has become crucial to treat these benefits correctly for taxation.
This course is one of a two-part series, and aims to explain the tax implications of fringe benefits and allowances, when it should be taxed and when it shouldn’t.
This session will cover the following:
• All fringe benefits and allowances governed by the Income Tax Act such as:
o Travel allowances
o Subsistence allowances
o Right of use of a motor vehicle
o Right of use of other assets
o Free or cheap services
o Staff loans
o Housing
o Other allowances and benefits
• The responsibilities of employers for withholding taxes, as well as possible VAT implications on certain fringe benefits
• The employee’s responsibility for record keeping in order to claim deductions against allowances and benefits upon assessment
• Administrative provisions related to the tax return
All employers and employees that wish to learn more about how fringe benefits and allowances should be taxed.
