Use of employer Owned cellphone for fringe benefit purposes?

By Marc Sevitz · Updated

We have entered into 20 cellphone contracts with a service provider this month. We will be giving our staff members employer owned handsets to use for work purposes ie business calls, work emails. These will come with R100 airtime, 300MB of data, 25 sms per month. We will be paying R280 per phone pm.

Please advise on whether this fringe benefit is fully taxable. Someone from SARS just told me that it is but I don't believe him.
TaxTim Marc

TaxTim Marc said:
5 September 2014 at 15:59

Will the employees be able to make personal calls etc from these phones?
Portia

Portia said:
5 September 2014 at 16:06

The employees will not be allowed to make personal calls using the phones, these will strictly be for business use.

TaxTim Marc

TaxTim Marc said:
7 September 2014 at 16:59

Given that the employees will be given cell phones strictly for business use and no personal activities will take place this is not a fringe benefit, but a business expenses for the company.
Salary / IRP5
Deductions
Depreciation / Wear and Tear