CASE STUDY 1
Sophia net normal tax as 29 February 2020 R
Salary R 1 400 000
Bonus R 200 000
Award from employer R 6 000
Entertainment allowance R 18 000
Loan : fringe benefit
official rate = Repo rate + 1% 7%+ 1%= 8%
01 March 2019 to 29 February 2020 R300 000*(8%-5%)*184/366 R 4 525
01 September 2019 to 29 February 2020 (R300 000-R15 000)*(8%-5%)*(182/366) R 4 252
Foreign dividends 11360
Less: Partial exemption (25/45 *11360) 6311 R 5 049
SA interest 25563
Less: Partial exemption below 60years < 65 years 23800 R 1 763
Use of an employer motor vehicle
Determined value= R450 000*1.14*85%*85%=R370 643
Cash equivalent of fringe benefit(R370 643*3.25%*11 months) 132505
Less; Business purposes (14 000km/21 000km)*R 132 5050 88337
Less: Panel beater repairs(7000 km/21 000km)*R5000 1667
Less Fuel costs (7 000km *(133.5c/100) 9345
Less : consideration paid by employee(R 1500*11months) 16500 R 16 657
Holiday accomodation : ( R10 000 + R0) R 10 000
Subsistence allowance received (R 400 *10) 4000
Less: Higher of deemed cost or actual cost:
Deemed cost = R435 * 10 = R 4350
Actual cost = R 3 500
therefore use deemed cost R4 350 limited to actual cost 4000 R -
Medical aid fringe benefit (R144 000 * 60%) R 86 400
INCOME R 1 752 645
Sophia net normal tax as 29 February 2020 R
Salary R 1 400 000
Bonus R 200 000
Award from employer R 6 000
Entertainment allowance R 18 000
Loan : fringe benefit
official rate = Repo rate + 1% 7%+ 1%= 8%
01 March 2019 to 29 February 2020 R300 000*(8%-5%)*184/366 R 4 525
01 September 2019 to 29 February 2020 (R300 000-R15 000)*(8%-5%)*(182/366) R 4 252
Foreign dividends 11360
Less: Partial exemption (25/45 *11360) 6311 R 5 049
SA interest 25563
Less: Partial exemption below 60years < 65 years 23800 R 1 763
Use of an employer motor vehicle
Determined value= R450 000*1.14*85%*85%=R370 643
Cash equivalent of fringe benefit(R370 643*3.25%*11 months) 132505
Less; Business purposes (14 000km/21 000km)*R 132 5050 88337
Less: Panel beater repairs(7000 km/21 000km)*R5000 1667
Less Fuel costs (7 000km *(133.5c/100) 9345
Less : consideration paid by employee(R 1500*11months) 16500 R 16 657
Holiday accomodation : ( R10 000 + R0) R 10 000
Subsistence allowance received (R 400 *10) 4000
Less: Higher of deemed cost or actual cost:
Deemed cost = R435 * 10 = R 4350
Actual cost = R 3 500
therefore use deemed cost R4 350 limited to actual cost 4000 R -
Medical aid fringe benefit (R144 000 * 60%) R 86 400
INCOME R 1 752 645
