The accommodation fringe benefit arises when an employer provides an employee with residential accommodation free or at less than its value. The value of that housing is a taxable benefit.
What it means
Free or cheap housing is a real benefit, so SARS brings its value into remuneration. The taxable value is set either by a prescribed formula based on the employee's remuneration and the property, or by the actual cost to the employer, with some relief where the employee pays rent or the accommodation is a specific type. The employee's contribution reduces the benefit.
Where it fits in
The benefit is a fringe-benefit component added to the PAYE base for the period. It forms part of cost to company and is reported on the IRP5 under the relevant source code.
Key rules
- Taxes the value of employer-provided residential accommodation.
- Value is set by a prescribed formula or by actual cost.
- Rent the employee pays reduces the taxable benefit.
- A fringe-benefit component included in remuneration for PAYE.
