individuals Flashcards
uniform allowance
exemption
the allowance is exempt from tax if the uniform is clearly distinguishable from ordinary clothing
bursaries
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
relocation benefits
-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
travel allowance
travel allowance less (business km travel *deemed cost)
assets acquired @ less than actual price
benefit=value -consideration paid by ER
-value includes VAT
-consideration excludes VAT
subsistence allowance
subsistence allowance less higher of deemed cost and actual amount paid
-meal and incidentals cost - R522 per day
-incidentals cost only = R161 per day
right of use of asset
-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
right of use of motor car (value)
value of private use
-maintenance plan 3.25% * month
-no maintenance plan 3.5%*months
-operating lease actual cost +fuel
meals and refreshment voucher
value -consideration paid by employee
residential accommodations
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
subsidiaries
-employer pays subsidiary in respect of capital or interest on behalf of employee to a third party, include the full benefit
discharge/release of obligation
amount paid by employer
free or cheap service
apply full value
medical aid contribution
amount paid by employer
cost of relating to medical services
amount paid by employer
contribution to retirement funds
amount paid by employer
home study
contribution to retirement funds
-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
donation
tax per table
1st amount in the tax table +(2nd amount -taxable income*%)
credit against tax
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
medical expenses
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
Bursaries limitations
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
Right of use of assets exclusions
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
right of use of motor car (consideration paid by employee)
-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
low interest rate loan
fringe benefits = interest on loan @official rate less interest paid by employee
