When companies want to offload old assets, they often sell them to employees who’ve been using them or auction them off internally. Sounds like a steal, right? Well, here’s the tax twist most people ignore:
Company Income Tax: Those assets are usually fully depreciated, so the selling price becomes taxable income for the company.
PAYE: If you score that asset for less than its market value, the discount is a fringe benefit—and yes, the taxman wants his share.
So before you brag about your bargain, remember: cheap deals can come with hidden tax feels!
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.
The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
