This course provides a practical guide to the taxation of fringe benefits and allowances under the Income Tax Act. It covers employer and employee obligations, relevant tax documentation, and potential VAT implications. Ideal for payroll professionals and tax practitioners managing employee remuneration and compliance with South African tax laws.
Participants will explore the full range of fringe benefits and allowances governed by the Income Tax Act, including travel and subsistence allowances, use of company vehicles or assets, staff loans, housing, and other benefits. The course details employer responsibilities for tax withholding and VAT implications, as well as the employee’s duty to maintain records for claiming deductions. A walkthrough of tax submission documents—such as the IRP5 and ITR12—will provide attendees with a clear understanding of the administrative requirements involved in reporting allowances and benefits.
Key Topics Covered:
• A coverage of all fringe benefits and allowances governed by the Income Tax
• 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.
