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.