Tax on cellphones

Anton Lockem*

25 May 2010

Much depends on the niceties that come with the phone.

As a general rule, where an employee has been given the use of a company cellphone to be used by that employee mainly for business purposes and, it is in fact so used, no fringe benefit tax consequences should ensue. Where however, the use of the phone is accompanied with other niceties, such as a gift voucher, then in all probability the gift voucher would be subject to fringe benefit tax.

*Anton Lockem is a partner in Shepstone & Wylie Attorneys' tax department