Author Archive for: ‘Shannon’

The following table reflects repayments on every R1 000 borrowed.

When a travel allowance has been received, the employee must determine the allowable deduction for business travel. There are two ways in which this could be done: Using actual business expenditure (The value of the vehicle is limited to R665 000 for purposes of calculating wear and tear, which must be spread over seven years, while finance costs are also …

When an employee receives the right to use a motor vehicle the following provisions apply: Where the vehicle is owned by the employer, the taxable value is 3,5% of the determined value (Vehicles purchased before 1 March 2015: The cash cost including VAT; Vehicles purchased on/after 1 March 2015: Retail market value) per month of each vehicle. Where the vehicle …

Where an advance or allowance is received by an employee for meals and other incidental costs, he / she can deduct either: The amount actually spent (limited to the advance or allowance), or The daily amounts set out in the table below where the employee is obliged to spend at least one night away from his/her usual place of residence …

The fringe benefit to be included in gross income is calculated in the following different ways, depending on the circumstances: Using a formula less the amount paid by the employee Using the lower of a formula or the cost borne by the employer less the amount paid by the employee When holiday accommodation has been provided, the fringe benefit will …

No fringe benefit will arise if an employee acquires a house from their employers at a discount (i.e. at a price below market value) if the following requirements are met: The employee does not earn more than R250 000 in salary during the year of assessment in which the acquisition took place The market value of the property that is …

The difference between interest charged at the official rate and the actual amount of interest charged on employee loans, is to be included in gross income. Short-term loans granted at irregular intervals to employees are, however, exempted to the extent that it does not exceed R3 000.

Bursaries are exempt from tax where: the bursary is granted to an employee who agrees to reimburse the employer for the bursary if the employee fails to complete his studies for reasons other than death, ill-health or injury, or the bursary is granted to a relative of an employee that earns less than R600 000 per annum and to the …

Medical fund contributions paid on behalf of an employee is a fringe benefit. As a result the employee is deemed to have made the payment to the scheme and may get a tax credit.