VIP Payroll

efreshment. The value of the taxable benefit is the cost to the employer lessany consideration paid by the employee.No value is placed on the meal if:• it is provided in a place mainly or wholly patronised by the employees or aplace on the employer’s premises, or• it is provided during business hours, extended business hours or on aspecial occasion.6.5 Residential Accommodation (Paragraph 9, 7th Schedule)Residential accommodation provided to an employee either free of charge orfor a consideration that is less than its determined rental value gives rise to ataxable benefit. The residential accommodation may be furnished orunfurnished, and it may be provided with or without fuel, power or water.The value of the taxable benefit in respect of residential accommodation mustbe the determined rental value less any consideration paid by the employee.The rental value to be determined is the greater of:• any rent payable by the employer and other expenditure in respect of theaccommodation, or• an amount determined according to the formula(A - B) x C/100 x D/12 where:A = remuneration in the previous year, excluding travel allowance,the taxable value of a company car, and the taxable value of freeor cheap residential accommodation.B = R67 111 from 1 March 2013 (subject to certain exclusions).C = 17 unless the accommodation consists of at least 4 rooms.= 18 if unfurnished and power or fuel is supplied by the employer.= 18 if furnished and no power or fuel is supplied by the employer.= 19 if furnished and power or fuel is supplied by the employer.D = the number of completed months in the year of assessmentduring which the employee is entitled to the accommodation.The value of “B” has not yet been promulgated at time of printing.Please verify this value before doing the calculation.The meaning of a “room” for the purposes of the above formula has beeninterpreted by SARS as being a “separate part of the inside of a building”.Payroll Pocket Guide 2013|2014© 2013 Sage VIP31