Fringe benefits for sale proprietors?
By Alicia Human · Updated
Does a Sole trader who uses his vehicle for personal and business use have to pay a fringe benefit tax himself as he is not classified as an employee.
No, he would not have to pay fringe benefit tax. This would only be payable on an employer provided vehicle, which is not applicable for a sole proprietor.
Just wanted to inquire by yourself if it is possible to have any supporting documents in this regard that
is applicable to SARS/tax guidelines as I require documented notes etc.
If there is any fee involved, kindly advise.
is applicable to SARS/tax guidelines as I require documented notes etc.
If there is any fee involved, kindly advise.
Bellow is an extract from the SARS Guide for employers in respect of Fringe Benefits Tax:
"With effect from 01 March 2014 a taxable fringe benefit may arise where the employee acquires an asset from the employer at less than the market value."
By definition, fringe benefits tax only applies to employee (and not someone working as a sole proprietor).
"With effect from 01 March 2014 a taxable fringe benefit may arise where the employee acquires an asset from the employer at less than the market value."
By definition, fringe benefits tax only applies to employee (and not someone working as a sole proprietor).
Thank you so much!!!!!!!!
Only a pleasure!