This training provides a comprehensive understanding of the taxation of fringe benefits and allowances under the Income Tax Act. It covers employer responsibilities for withholding taxes, VAT implications, employee record-keeping for deductions, and the tax submission process, ensuring compliance with tax regulations and optimizing tax efficiency.
Participants will explore the taxation of various fringe benefits, including travel and subsistence allowances, motor vehicle and asset usage, staff loans, housing, and other employer-provided benefits. The course also covers employer tax withholding obligations, VAT considerations, employee compliance for deductions, and a practical demonstration of tax submission documents (IRP5 and ITR12).
Key Topics Covered:
• relevant taxation laws, including but not limited to:
• A coverage of 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
• A demonstration of the tax submission documents involved in the process (IRP5 as well as the ITR12)
• Tax professionals
• Payroll administrators
• HR practitioners
• Finance managers
• Business owners who need to understand the tax treatment of bursaries and other educational incentives in the workplace.
