Page 11 - GA Maclachlan Tax Guide 2024

Low-cost housing
No fringe benefit will arise if an employee acquires a house from their employers
at a discount (i�e� at a price below market value) if the following requirements
are met:
■ The employee does not earn more than R250 000 in salary during the year
of assessment in which the acquisition took place
■ The market value of the property that is acquired may not exceed R450 000,
and
■ The employee may not be a connected person in relation to the employer
Interest-free or low interest loans to finance the above stated low cost housing will
not be regarded as a fringe benefit if the loan also does not exceed R450 000�
Interest-free or low-interest loans
The difference between interest charged at the official rate and the actual amount
of interest charged on employee loans, is to be included in gross income�
Short-term loans granted at irregular intervals to employees are, however,
exempted to the extent that it does not exceed R3 000�
Bursaries
Bursaries are exempt from tax where:
■ the bursary is granted to an employee who agrees to reimburse the employer
for the bursary if the employee fails to complete his studies for reasons other
than death, ill-health or injury, or
■ the bursary is granted to a relative of an employee that earns less than
R600 000 per annum and to the extent that the bursary does not exceed
R20 000 (R30 000 for disabled relative) grade R to matric and R60 000
(R90 000 for disabled relative) for further education� The bursary cannot be
as a result of any salary deduction taken by the employee�
Medical fund contributions
Medical fund contributions paid on behalf of an employee is a fringe benefit� As
a result the employee is deemed to have made the payment to the scheme and
may get a tax credit�
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