SARS has provided a small break to those who have company cellphones and computers. With the changes to the Revenue Law Amendment Act, SARS will no longer calculate any fringe benefit for the use of company cellphones and computer equipment. There are as usual limitations...
Whether an employer pays the full cost of the cellphone directly or by means of a reimbursement to the employee does not seem to matter. There should however be some sort of analysis of business verse private expense to prevent SARS from attacking it. Important to note it that if an employer merely pays an allowance (as apposed to a reimbursement against expenses) this will be fully taxable.
For more information on this, Wayne can be contacted on 033 330 7333, or read para 6(4) and 10(2) of the Seventh Schedule of the Income Tax Act.
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