The ways and means of tax-free company transport
Sars clarifies when and how your employer can provide transport without you being taxed on the benefit
You will no longer be liable for fringe benefits tax if your employer provides transport to and from work, as long as that benefit has no taxable value attached to it. Sars has clarified an area of confusion that now makes it clear when company transport will not be a taxable benefit, and may, in fact, open a business avenue for transport companies. While the provision has been in place for some time, confusion had developed about just what it meant to have a benefit qualified as a taxable fringe benefit for employees, but which had no taxable value. Sars released an interpretation note (interpretation note 111) that, when read with the binding general ruling (income tax), has clarified exactly when and how you can enjoy transport provided by an employer without paying tax on the benefit. Wesley Grimm, an associate at law firm Webber Wentzel, says the clarification from Sars is welcome as it means employers can now structure the provision of transportation to their employees better ...
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