Relocation assistance packages (Domestically inside SA)

Jet-Fighter7700

Jet-Fighter7700

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Hi All,

I would like to find out regarding Relocation assistance packages (inside SA) , how do they usually work?
have you ever got one? is it considered income?

can I use it to pay a deposit on a place I intend to rent?
 
I can tell you with confidence that SARS will want their slice of the pie and will be subject to PAYE.
The onus would be upon that taxpayer to claim back any expenditure in relation to the income.
 
They exist in SA, present in larger multinationals.

Check your company policy to see if there are restrictions on what you can spend it on. Typically, you are free to do with it as you please. I know people that simply pocket it.
 
I've received one, many many years ago.
Was simply a cash amount and you could use it on anything you wanted.

With regards to SARS I seem to remember the amount I received was already taxed, and after I put the details into Efiling I actually got money back from SARS.
 
Tman* said:
They exist in SA, present in larger multinationals.

Check your company policy to see if there are restrictions on what you can spend it on. Typically, you are free to do with it as you please. I know people that simply pocket it.
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this is a smaller company, and was told its considered income, so if they were to give it to me,
SARS would pocket some of it to chow on and Id get less value out of it,

I wanted to find out if this is the normal thing?
 
Jet-Fighter7700 said:
this is a smaller company, and was told its considered income, so if they were to give it to me,
SARS would pocket some of it to chow on and Id get less value out of it,

I wanted to find out if this is the normal thing?
Click to expand...
As mentioned in the post above, usually it's already taxed. So if a company tells you that you are getting R10 000, you will get the full R10 000. However, with a smaller company it might very well be pre tax.
 
Unfortunately there is no way around not paying tax. The only way would be for the company to pay the services directly, in other words no money goes into your account. This will then be an expense on the company.
 
RedViking said:
Unfortunately there is no way around not paying tax. The only way would be for the company to pay the services directly, in other words no money goes into your account. This will then be an expense on the company.
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thats what they told me, they organize a removal company for me, and pay for that, but I cant use that cash as cash to pay for something else relocation related like deposits, flights ect...

is that how these things work? never got one so I want to ask.
 
Jet-Fighter7700 said:
thats what they told me, they organize a removal company for me, and pay for that, but I cant use that cash as cash to pay for something else relocation related like deposits, flights ect...

is that how these things work? never got one so I want to ask.
Click to expand...
You can, but the company will then pay/deduct tax on it before it reaches your account, like any other benefit. I haven't received something like that either as I have never been employed, but I know if I have to give one of my employees a benefit for relocation it will be taxed. The employee won't be able to claim back on that tax on their return as the expense is on the company, and a benefit to the employee.
 
With regards to the deposit, no, that is a benefit, that will be taxed. It's part of rent. To the company it is an expense.

The best is to speak to an accountant or your company's accountant.
 
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