Many companies downsized their office accommodation during the 2020 /2021 period, in many cases:
- No final decision regarding reinstating previous office space requirements.
- Rental agreements are flexible in terms of space utilization – i.e. fewer offices, communal meeting rooms / boardrooms, etc.
- Office sharing / consolidation (between companies) is becoming common.
- No decision on returning all employees to a full time office role.
- A dual approach is very common – i.e. 1 week in the office and 1 week at home, etc.
- The need for employees to be adequately equipped to perform their jobs has become important – i.e. no reason for not being able to attend online meetings due to load shedding, etc.
The usual items such as cell phones, laptops, connectivity, etc. are provided for:
- Where the employee gets personal use and such use is “incidental” (i.e. less than 50%) then there is no tax implication.
- Where the employee “inherits” the device should the employee leave then the cost or current market value of the item needs to be ascertained and then taxed accordingly (i.e. as a fringe benefit).
- Actual usage of data/airtime etc. is normally split between business and personal-related use is then taxed accordingly.
- Office stationery – normally provided for by the employer or the employee enters a claim (substantiated!).