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Fringe Benefits- Individuals - Coggle Diagram
Fringe Benefits- Individuals
Right of Use Sundry Assets
Special Rules
-If leased by ER pvt. use = rent
-If owned by ER pvt. use = 15%xLesser CP/MV
-If EE has sole RoU for major portion pvt. use = CP
No Use
-In Leg.
Cash Equivalent
-Value pvt. use less EE consideration
Right of Use Motor Vehicle
Cash Equivalent
-Value of pvt. use less EE consideration
Special Rules
•Maintenance Plan; Pvt. use=
Determined Value
x 3.25%
•No Maintenance Plan; Pvt. use =
Determined Value
x 3.5%
-Operating Lease; Pvt. use=Actual cost to ER+Fuel costs
Determined Value
•Before March 2015;
-Acquired by ER= OG cost (Incl. Vat)
-Any other case= MV @ time RoU obtained
•On/After March 2015;
-Acquired by ER= MV (excl. fin)
-Leased by ER= MV @ time RoU acquired
Reduce DV with 15% for every full 12mo
Reductions to Value of Pvt. Use
1) If EE keeps logbook; Pvt. use
Less
Business km/Total km
2) If EE bears all fuel cost & logbook kept; Pvt. use
Less
(Fuel rate for TA x Pvt. km/Total km)
3) If EE bears full cost of license, insurance & maintenance; Pvt. use
Less
cost by EE x pvt. km/Total km
Meals, Refreshments & Related Vouchers
Cash Equivalent
-Value of meals etc. Less EE compensation
Special Rules
-Value of meals= Cost for ER
Exclusions
-Board/meals provided with residential accommodation
Residential Accommodation
Cash Equivalent
-Rental Value of Accommodation Less EE Consideration
Special Rules
Accommodation Rented by ER
-Rental Value= Lower Formula & Expenditure by ER
-ER must not own accommodation
-ER must obtain use from unconnected party
-Transaction must be at arm's length
Holiday Accommodation
-If Hired by ER; Rental Value= All costs borne by ER
-Any other case; Rental Value= Rates per day which accommodation will normally be let out
Formula Value
(A-B)xC/100xD/12
A=Rem. Proxy
B= R78 150 or 0
C= 17, 18 (4 rooms, furnished OR power), 19 (4 rooms, furnished AND power)
D= Number of months accommodation is provided to EE
Free or Cheap Services
Cash Equivalent
-Cost to ER less EE consideration
Special Rules
-ER in business of transporting pax for fee by sea/air; lowest fare less EE consideration
Low Interest Loan
Cash Equivalent
-Interest on outstanding @ official rate LESS EE interest
Special Rules
•IF;
1) EE lives in house owned by ER &
2) EE or spouse/minor child is obliged to acquire house from EE in future at agreed price
•THEN;
1)Rental is calculated as a % of purchase price
2)Cash equivalent= Price(Official %-Rate to calculate rent)
No Values
-Debts ≤ R3 000
-Debt to enable EE to further studies