Fringe benefits – Meals, Refreshments and Meal and Refreshment Vouchers

Paragraph 2(c) of the 7th Schedule prescribes that a taxable benefit shall be deemed to have been granted where the employee has been provided with any meal or refreshment or voucher entitling him / her to any meal or refreshment, either free of charge or for a consideration which is less than the value of such meal, refreshment or voucher.
Value to be placed on the benefit in terms of Paragraph 8 of the 7th Schedule is the cost thereof to the employer less any consideration paid by the employee.

No value shall be placed on —- Any meal or refreshment supplied by an employer to his / her employees in any canteen, cafeteria or dining room operated by or on behalf of the employer and patronised wholly or mainly by his / her employees or on the business premises of the employer.
– Any meal or refreshment supplied by an employer to any employee during business hours or extended working hours or on special occasions.
– Any meal or refreshment enjoyed by an employee in the course of providing a meal or refreshment to any person whom the employee is required to entertain on behalf of the employer.
– Board and meals provided with accommodation. They are dealt with as part of the accommodation benefit.

Employees’ tax — Employees’ tax must be deducted from the cash equivalent of the benefit.
IRP 5 — The cash equivalent of the benefit must be reflected under code 3804 on the IRP 5 certificate.