Can an employer pay an employee for medical aid if its not medical aid through the company but rather on their own capacity? For example I have my own medical aid on my name. Can my employer pay me a set amount of R2000 every month for medical aid? What is the tax benefit of that, if any?
What is the difference between a car/Motor Vehicle allowance and travel allowance or are they the same thing? I don't travel for the company, but could I still get a car/Motor Vehicle allowance?
Your employer can pay for your medical this way, but you will be taxed on the amount given to you, as if it were income like a salary, the same with an allowance for a motor vehicle. You are able to claim tax credits for contributions to medical aids and business travel against the car allowance.
Get SARS Tax Dates and Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.