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SARS clarifies what transport services “rendered by the employer” means

May 14, 2019
By Wesley Grimm, an Associate at Webber Wentzel (Assisted by Sergio dos Santos, a Candidate Attorney) To assist employers and employees with over-coming transport-related difficulties, the Income Tax Act, 1962 (the Act) introduced a mechanism to allow employers to provide transport services to their employees and that, although qualifying as a taxable fringe benefit in the employees’ hands, no taxable value was given to such benefit. However, uncertainty arose as to what “any transport service rendered by any employer” in paragraph 10(2)(b) of the Seventh Schedule means.  SARS has now clarified under what circumstances no value can be given to the…

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