Hello everyone
If i give my employee a personal loan of R2000, would I be able to deduct this when calculating my company tax liability at year end?
Hello everyone
If i give my employee a personal loan of R2000, would I be able to deduct this when calculating my company tax liability at year end?
Not if the loan is repayable.
Employee loans are not deductible for income tax purposes.
What about SARS regarding an interest free loan as a fringe benefit?
Excellence is not a skill; its an attitude...
And if the company is a VAT vendor they would also have to account for output tax on the fringe benefit.
loans repayable only affect the balance sheet - so you won't be able to deduct it
Geraldene Kapp
Professional Tax Help
www.mytaxhelp.co.za
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