Employer-owned vehicles
• The taxable value is 3.5% of the determined value (the cash cost including VAT) of each vehicle per month. Where the vehicle is:
• the subject of a maintenance plan when the employer acquired the vehicle the taxable value is 3,25% of the determined value; or
• acquired by the employer under an operating lease, the taxable value is the cost incurred by the employer under the operating lease plus the cost of fuel.
• 80% of the fringe benefit must be included in the employee’s remuneration for the purposes of calculating PAYE. The percentage is reduced to 20% if the employer is satisfied that at least 80% of the use of the motor vehicle for the tax year will be for business purposes.
• On assessment, the fringe benefit for the tax year is reduced by the ratio of the distance travelled for business purposes, substantiated by a logbook, divided by the actual distance travelled during the tax year.
• On assessment further relief is available for the cost of the licence, insurance, maintenance and fuel for private travel if the full cost thereof has been borne by the employee and if the distance travelled for private purposes is substantiated by a logbook.
Interest-free or low-interest loans
• The difference between interest charged at the official rate, and the actual amount of interest charged, is to be included in gross income.
Residential accommodation
• The value of the fringe benefit to be included in gross income is the lower of the benefit calculated by applying a prescribed formula, or the cost to the employer if the employer does not have full ownership of the accommodation.
• The formula will apply if the accommodation is owned by the
employee, but it does not apply to holiday accommodation
hired by the employer from non-associated institutions.