Page 36 - F6 Slide - Taxation - Lecture Day 3 F

Income from Employment

Fringe Benefit

• Use of sundry assets

• When an employee receives the use of an asset free of

charge or for a consideration that is less than the cash

equivalent for private use.

• The benefit depends on whether the asset is leased or

owned:

• If leased=rental paid by employer

• If it is owned=15%p.a multiplied by the lesser of cost the

to the employer and market value at the start of the

period of use.

• Multiplied by the number of months used divided by 12.

36