Fringe Benefits: Chapter 3 – Categories of Fringe Benefits

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Chapter 3 – Categories of Fringe Benefits

Fringe Benefits are classified under three categories:

  • Car Benefits
  • Use of Assets, including accommodation
  • Other Benefits

Employers must account and report on the value of the fringe benefits under each of these headings. However, there is no requirement to account for the tax on such fringe benefits under the separate headings because such tax cannot be segregated and separately identified. The three categories of fringe benefits are:

  1. Car benefits
    • These include:
    • the use of cars owned, leased or hired by employers, or by companies or partnerships, and made available to their employees or officers for their private use; and
    • cash allowances paid to employees or officers in respect of the use of their own cars.
  2. Use of Assets including AccommodationThis refers to the use of assets owned or leased by employers, or by companies or partnerships, and made available to their employees or officers for their private use. This excludes the use of cars which fall under Category 1, but includes the private use of residences, boats, aeroplanes, furniture, machinery etc.
  3. Other BenefitsThese are any other benefits provided to employees that do not fall in the two categories above. Such benefits would include, amongst others, transfers of assets at subsidised prices, low interest rate loans, reimbursement of bills (utilities, school fees etc), and the provision of free or discounted goods and services like travel, entertainment, insurance, meals, domestic services, professional advice, provision of transport etc.