Please enable JavaScript.
Coggle requires JavaScript to display documents.
Individuals- Fringe Benefits 3rd Year (2) (Free or Cheap Services (Special…
Individuals- Fringe Benefits 3rd Year (2)
Free or Cheap Services
Special Rules
-Traveling outside SA by EE or relative where ER is in a business of transporting pax for a fee by sea or air= lowest fare less consideration by EE or Relative
Exclusion
Services relating to:
-residential accommodation
-medical accommodation
-medical services
-pmts to insurers for benefit of EE
Cash Equivalent
-Cost to ER for rendering service less consideration by EE
No Values
-Travel by EE, spouse/minor child to destination in SA, over land to destination outside SA, destination outside SA on normal flight with no reservation of seat
-Transport of EE from work to home (vice versa)
-Communication services mainly for business
-Services @ work to improve duties
-Travel facility for spouse/minor child of EE, to travel residence and business place: >250km and 183 days away
Residential Accommodation
Cash Equivalent
-Rental Value of Accommodation LESS consideration by EE
Special Rules
Rental value= Formula Value
Formula Value
(A-B) x C/10 x D/12
A= Remuneration Proxy
B=R78 150 or 0
C=17
=18 (house @ lease 4 rooms, either furnished or power provided)
=19 (at least 4 rooms, furnished AND power)
D=number months that accommodation was provided during YOA
Rental Value
1) Accommodation rented by ER
-Rental Value= Lower of Formula & Expenditure by ER iro accommodation
-ER must not own Accommodation
-ER must obtain use of accommodation from unconnected party
-Transaction must be @ arm's length
2) Holiday Accommodation
-If hired by ER=all costs borne by ER
-Any other case (e.g. ER owns accommodation)=Rates per day @ which accommodation could normally be let to non EE
No Values
1)
Accommodation supplied while EE (resident) is away from usual place of residence in SA for work
2)
Accommodation in SA to non-resident EE who is away from usual residence outside SA for;
-Period not more than 2 years after arriving in SA OR
-Period less than 90 days in YOA
Exception=
<= 2 years rule will not apply:
-if a person was present in RSA for >90 days in YOA preceding arrival date OR
-to excess of cash equivalent over R25 000 x number of months
Subsidies iro Debt
Cash Equivalent
-Amount of the subsidy
-If Amount paid by ER & EE Interest > Official interest rate then ER amount =
Subsidy
-If amount paid by ER & EE Interest < Official interest rate then ER amount=
Low Interest Loan
Discharge of Debt
Cash Equivalent
-Amount released or paid by EE
Special Rules
-Deemed discharge where the debt by EE to ER has prescribed & ER could have recovered the debt
No Values
-Pmt of EE's subscription if membership is condition of employment
-Insurance premiums
-Govt. EEs Pension Fund
-Settlement to 1st ER arising from non-compliance of bursary/study loan settled by 1st ER
Contributions to Medical Aid Schemes
Cash Value
-Amount of contributions paid
No Values
-Retired EE due to old age, ill-health or infirmity
-Dependents of a deceased EE
-Dependents of a deceased former EE who retired on grounds on old age, ill-health or infirmity
Costs Relating to Medical Services (Par12B)
Cash Equivalent
-Amount incurred by ER
No Values
-Services to EEs in general at workplace for better performance of duties
-Services/ medicines supplied for compliance purposes
-For benefit of retired people (old age, infirmity or ill-health), dependents of former EE's who died >/=65 years
-Treatments listed by minister of health as prescribed min. benefits
Benefits iro Insurance Policies (Par12C)
Exclusion
-IP that relates to event arising solely out of & in the course of employment of EE
Cash Equivalent
-Premiums Paid
Special Rules
-Ave. premium per EE is acceptable where ER cannot determine premium for indiv. EE