Page 32 - Taxation Test 4 Slides - Individuals

INDIVIDUALS & RING FENCING

Fringe Benefits

• Residential accommodation (par 2(d), 9 & 10A)

• CE = rental value – rental consideration

• Rental value
• If employer owns the property apply the formula

• If the employer rents the property, the value is the greater of the amount paid
by the employer, or the amount per the formula

• The formula: (A-B) x C/100 x D/12
• A = Remuneration proxy (remuneration derived from employer in preceding
YOA – will be provided)
• B = an abatement of R75 750 which is reduced to nil if a private company
where employee/spouse controls company or has the option to become the
owner of the accommodation
• C = 19 (if at least 4 rooms, is furnished and the employer pays electricity), 18 (if
at least 4 rooms and is unfurnished with electricity supplied or is furnished with
no electricity supplied) or 17

• D = number of months occupied

• No FB where it is customary in the industry to provide subsidized
housing or is for bona fide business purposes

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