Tax limbo leaves employers guessing on device and wellness perks

Résumé détaillé

Three years after the pandemic reshaped the workplace, employers are still grappling with unclear tax rules.

The use of technology, changing workplace practices and the interaction between home-office expenses, travel allowances, and existing tax rules remains a grey area for employers and employees years after the Covid-19 pandemic irrevocably changed the workplace environment.

National Treasury promised a discussion document during the 2023 Budget Review to deal with changes in the current environment, and how different workplaces are affected by home-office and travel-allowance policies.

The issues were extensively discussed during a National Treasury workshop where key role-players discussed submissions and possible solutions to bring relief for the administrative burden and the ‘guessing’ exercise caused by the lack of clarity.

Two issues that solicited several responses related to the provision of mobile devices, data and business connectivity, and employee wellness programmes.

National Treasury feels it forms part of the broader policy approach that will be dealt with in the future workplace discussion document. Several commentators want interim measures introduced to provide more guidance on grey areas.

Tarryn Atkinson, head of tax advisory at FirstRand Group, believes the issue of mobile devices and business connectivity was problematic even before Covid-19.

Prior to the pandemic, company representatives used mobile devices, laptops and iPads while travelling between clients and customers.

Read: Concerns about narrow interpretation for home office deductions Still time to comment on ‘elitist’ provision regarding home office expenses Adapting to the reality of the post-Covid workplace

“Technology and how we use it is changing … I do not think we can wait until a greater framework is completed,” she said.

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