individuals

Question 1

uniform allowance

Answer 1

exemption
the allowance is exempt from tax if the uniform is clearly distinguishable from ordinary clothing

Question 2

bursaries

Answer 2

exempt if it is:
 A bona fide scholarship or bursary
 Granted to assist or enable any person to study
 At a recognized educational or research institute

Question 3

relocation benefits

Answer 3

-employee moves at the insistence of the employer
-employer bears the cost
-transportation must involve a change of residence for the employee.
selling costs of previous residence plus settling costs and transportation costs to the new residence will be the one exempt

Question 4

travel allowance

Answer 4

travel allowance less (business km travel *deemed cost)

Question 5

assets acquired @ less than actual price

Answer 5

benefit=value -consideration paid by ER
-value includes VAT
-consideration excludes VAT

Question 6

subsistence allowance

Answer 6

subsistence allowance less higher of deemed cost and actual amount paid
-meal and incidentals cost - R522 per day
-incidentals cost only = R161 per day

Question 7

right of use of asset

Answer 7

-asset leased by employer
=amount leased by employer-amount paid by employee
-asset owned by employer
=lower market value or cost of employer 15%apportionment by employer -amount paid by employee

Question 8

right of use of motor car (value)

Answer 8

value of private use
-maintenance plan 3.25% * month
-no maintenance plan 3.5%*months
-operating lease actual cost +fuel

Question 9

meals and refreshment voucher

Answer 9

value -consideration paid by employee

Question 10

residential accommodations

Answer 10

value-consideration paid by employee
-is accommodation is hired by employer we use cost incurred by employer
-in other cases we use normal daily rate per person

Question 11

subsidiaries

Answer 11

-employer pays subsidiary in respect of capital or interest on behalf of employee to a third party, include the full benefit

Question 12

discharge/release of obligation

Answer 12

amount paid by employer

Question 13

free or cheap service

Answer 13

apply full value

Question 14

medical aid contribution

Answer 14

amount paid by employer

Question 15

cost of relating to medical services

Answer 15

amount paid by employer

Question 16

contribution to retirement funds

Answer 16

amount paid by employer

Question 17

home study

Question 18

contribution to retirement funds

Answer 18

-deduct contribution to ; pension fund,provident fund and retirement fund (of both ER AND EE) but it is limited to
the lesser of
1. R350 000
2. 27,5% of higher;
a) remuneration
b) taxable income
3. taxable income

Question 19

donation

Question 20

tax per table

Answer 20

1st amount in the tax table +(2nd amount -taxable income*%)

Question 21

credit against tax

Answer 21

deduct
-primary rebates (17 235)<64 years old
-secondary rebates (9 444) > 65 years old
-tertiary rebates (3 145)> 75 years old
-medical rebate
-employees tax
-provisional tax

Question 22

medical expenses

Answer 22

PART A (only if contributing to Medical scheme
-364 for taxpayer only
-728 for taxpayer + 1 dependent
-additional dependent R245
PART B
-qualifying medical expenses amount will be supplied

Question 23

Bursaries limitations

Answer 23

relative
20 000 for grade 1-12
30 000 for uni students
disability
30 000 for grade 1-12
90 000 for uni students
employee remuneration must be less than R600 000 if it is more than that there will be no exemption

Question 24

Right of use of assets exclusions

Answer 24

 Incidental private use (asset used mainly for business)
 Amenities enjoyed at place of work (but not if UNIFORM)
 Telephone / computer mainly used for business
 Equipment/machine used for short periods occasionally, and value of private use is negligible
 Books/recordings/art

Question 25

right of use of motor car (consideration paid by employee)

Answer 25

-business records
business km/total travelled *value of use
-employee paid certain cost (licence, maintenance or insurance)
certain cost *private km/total km
-if employer paid the fuel for private use
Where the employee bears the full cost of fuel for private purposes the benefit is reduced by the rate for fuel which applies in the travel allowance table.
not apply if the employer holds the vehicle under an operating lease

Question 26

low interest rate loan

Answer 26

fringe benefits = interest on loan @official rate less interest paid by employee