SARS Draft IN Note: Taxable benefit of employer provided cellular phones or computer equipment

DRAFT INTERPRETATION NOTE

ACT : INCOME TAX ACT NO. 58 OF 1962 (the Act)

SECTION : PARAGRAPHS 2(b), 2(e), 2(h), 6, 10 AND 13(1) OF THE SEVENTH SCHEDULE

SUBJECT : TAXABLE BENEFIT – USE OF EMPLOYER-PROVIDED CELLULAR PHONES OR COMPUTER EQUIPMENT AND EMPLOYER-FUNDED TELECOMMUNICATIONS SERVICES

Purpose

This Note provides clarity regarding –

• the determination of the value of the taxable benefit arising from the private or domestic use by an employee of employer-provided or employer-owned telecommunications equipment (for example, a cellular telephone) or computer equipment (for example, a laptop) and employer-funded telecommunications services; and

• the taxability of any allowance or reimbursement granted by the employer to the employee in respect of the employee’s privately-owned equipment or service contract which is used by the employee for purposes of the employer’s business.

To access the Interpretation Note, click here