This
allows enrepreneurs and students to understand how this part of the tax act is applied.
Fringe Benefits are a simple concept but are fairly complex on the whole and different ones attract different tax calculations.
Look at page #11 in the attached flip book and you will see that the SARS publication shows how this is determined with a formula.
It would have been feasible to expect the benefit to be paid on an amount that would be what the rent is worth in real terms, but SARS calculates the rent as though it is driven by remuneration and then adjusted to create a type of phantom rent.
It becomes confusing as two people earning different pay packages could possibly pay different fringe benefit tax for the same size accommodation.
Launch the model and see how it works.
