Question: Is A Phone Allowance Taxable Income?

What is cell phone allowance?

Based on job responsibilities, eligible employees may qualify for a non-taxable allowance to cover the business use of personal cell phones.

Recipients of the allowance will be required to obtain their own mobile communication device, also referred to as a cell phone, and service contract..

What company benefits are tax free?

We explore some examples of common tax-free benefits and expenses we often see as accountants to employers locally.Pensions. … Health screening and check-ups. … Welfare counselling. … Bicycles and cycling safety equipment. … Mobile phones. … Electric car charging. … Parking. … Removal expenses.More items…•

Is cell phone allowance taxable in South Africa?

An employer may pay an employee a fixed monthly allowance in respect of the use of the employee’s personal cellphone for the making of business calls. … All allowances paid to employees are included in “taxable income”.

Which allowance is exempt from income tax?

If you were receiving transport allowance from your employer till FY 2017-18, as a taxpayer, you can claim up to Rs 1,600 per month or Rs 19,200 per annum as exempt from tax before arriving at gross income chargeable to tax. In case of blind, deaf, or handicapped employees, the exemption limit is Rs 3,200 per month.

Do you declare family tax benefit on tax return?

You will claim it as an income tax deduction when you lodge your tax return. This is on top of the compulsory payments from your employer. You can find more information about personal deductible contributions on the ATO website.

What is a tax free government pension or benefit?

You might get tax free pensions or benefits from us or the Department of Veterans’ Affairs. These can include non-taxable Centrelink payments such as: Disability Support Pension. Carer Payment when you and the person you care for aren’t old enough to get Age Pension.

How much must you earn to pay tax in South Africa?

Who is it for? R83 100 if you are younger than 65 years. If you are 65 years of age or older, the tax threshold (i.e. the amount above which income tax becomes payable) increases to R128 650. For taxpayers aged 75 years and older, this threshold is R143 850.

Does employer have to pay for cell phone?

If the employee has unlimited minutes or data, the employer is still required to pay “a reasonable percentage of the employee’s cell phone bill.” The defense is that the company is passing it’s operating expenses onto the employee.

What are examples of taxable fringe benefits?

What Fringe Benefits are Taxable?health insurance (up to certain dollar amounts)accident insurance.disability insurance.Health Savings Accounts.dependent care assistance.educational assistance.group term life insurance coverage—limits apply based on the policy value.More items…

Are allowances taxable in South Africa?

The portion of the allowance which is subject to the deduction of employees’ tax is 50% and must be taxed at a rate of 25% as the holder of the public office is not in standard employment.

Do fringe benefits count as income?

Fringe benefits are generally included in an employee’s gross income (there are some exceptions). The benefits are subject to income tax withholding and employment taxes. … See Publication 15-B, Employers’ Tax Guide to Fringe Benefits, for more information.

Is fringe benefits included in gross income?

You have a reportable fringe benefits amount if the total taxable value of certain fringe benefits provided to you or your associate (for example, a relative) exceeds $2,000 in an FBT year (1 April to 31 March). Employers must gross-up this amount and report it on your income statement or payment summary.

What employee benefits are not taxable?

Other fringe benefits that are not considered taxable to employees include health insurance (up to a maximum dollar amount), dependent care, group term-life insurance, qualified benefits plans such as profit sharing or stock bonus plans, commuting or transportation benefits, employee discounts, and working condition …

Which fringe benefits are not taxable?

Other tax-free employee fringe benefits include employee stock options, employee discounts (up to 20% off), meals provided for the employer’s convenience (not deductible by the employer after 2025), adoption assistance, achievement awards (not including cash, gift cards, vacations, meals, lodging, theater or sporting …

What allowance is not taxable?

This type of allowance is paid to employees for commuting to their work place from home every day. If a conveyance allowance is less than ₹ 1,600, then it will be considered as non-taxable. The allowance is exempted up to ₹ 1,600 only, any amount more than that will be taxable as per income tax act.

What income is exempt from tax in South Africa?

Interest from a South African source, earned by any natural person under 65 years of age, up to R23 800 per annum, and persons 65 and older, up to R34 500 per annum, is exempt from income tax.

How much tax will I pay on my salary?

Current Tax Thresholds 2020-2021Income rangeTax Rate$18,201 – $45,00019.0%$45,001 – $120,00032.5%$120,001 – $180,00037.0%$180,001 – +45.0%1 more row