Page 48 - Taxation F6 - Income From Employment

Income from Employment
Fringe

• Residential accommodation

• If owned by the employer

- Rental value=determined by the formula

• If not owned by the employer

- Rental value= Greater of amount determined by

• A)Formula

• b)total amount paid(rental or other expenditure ) by the employer for the accommodation.

• However if the full ownership does not vest in the employer the formula is used if the

following conditions are met:

- it is customary in the industry to provide free or subsidised accommodation to its

employees.
- it is necessary for the employer having regard to the particular kind of employment to

provide free or subsidised accommodation

a) For the proper performance by the employees of their duties or

b) As a result of the frequent movement of employees or

c) As a result of a lack of employer-owned accommodation

- The benefit is provided solely for business purposes other than obtaining tax benefit.
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