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RESIDENTIAL ACCOMMODATION par (9) - Coggle Diagram
RESIDENTIAL ACCOMMODATION par (9)
GENERAL
Free residential acco/ for consideration < MV
RENTAL VALUE 1
A = Remuneration Proxy
B = R79 000 or 0
RV = (A-B) x C/100 x D/12
C = 17 or 18 or 19
If ER owned: RV = Formula
D = No of months accommodation was provided during YOA
C depends on the no of rooms and if it is furnished & Power or fuel
RV depends on whether ER owns or lease the accommodation
B = 0 in 2 instances
ER is a private co controlled by EE directly or indirectly
EE has preemption from ER to acquire the property because of a controlling interest in the company
VALUE
Two accommodation? Use the one with the highest RV
Use a formula for Rental Value (RV)
Rental value less amt paid by EE
NO VALUE
Physically present <90 days in the YOA (No need to be continuous 90 days.
An EE who is a Non-residence:
<2 years after arriving in SA to perform his duties (For longer periods)
Away from usual place of resident for work in SA
RENTAL VALUE 2
ER must not own the accommodation
ER obtained the use of accommodation from an unconnected party
Conditions for the above to apply (Lower of...)
Transaction must be at arms length
RV = lower of Formula or Cost to ER
If ER leased the property
RENTAL VALUE 3
If hired by ER, RV = All costs borne by ER
Other (ER owned), RV = Prevailing rates per day
Holiday accommodation
Which accommodation could normally be let to a person who is not an EE