MOTOR VEHICLE

BENEFIT
 A.
If the employer purchases the
motor vehicle in the name of the
employee, the value of the fringe
benefit is the acquisition cost.

Monetary Value = Acquisition Cost X 100%

 B.
If the employer provides the
employee with cash for the purchase
of a motor vehicle, the ownership of
which is placed in the name of the
employee.

Monetary Value = Cash Grants X 100%

 C.
If the employer purchase the car on
installment basis, the ownership of
which is placed in the name of the
employee.
Monetary Value
=
(𝑨𝒄𝒒𝒖𝒊𝒔𝒊𝒕𝒊𝒐𝒏 𝑪𝒐𝒔𝒕 𝒆𝒙𝒄𝒆𝒑𝒕 𝑰𝒏𝒕𝒆𝒓𝒆𝒔𝒕)
X 100%
𝟓 𝒚𝒆𝒂𝒓𝒔
 D.
If the employer shoulders a portion of
the amount of the purchase price of
a motor vehicle the ownership of
which is placed in the name of the
employee.
Monetary Value
=
Amount shouldered by the employer X 100%
 E.
If the employer owns and maintains
a fleet of motor vehicles for the use
of the business and the employees.

Monetary Value
=
𝑨𝒄𝒒𝒖𝒊𝒔𝒊𝒕𝒊𝒐𝒏 𝑪𝒐𝒔𝒕
X 100%
𝟓 𝒚𝒆𝒂𝒓𝒔
 F.
If the employer leases and maintains
a fleet of motor vehicles for the use
of the business and employees.

Monetary Value
=
Rental or Lease Payments X 50%
 G.
The use of aircraft (including
helicopters owned and maintained
by the employer shall be treated as
business use and not to be subject to
the fringe benefit tax.

EXEMPT FROM FRINGE BENEFIT TAX

 H.
The use of yacht whether owned
and maintained or leased by the
employer shall be treated as taxable
fringe benefit.

Monetary Value
=
𝑨𝒄𝒒𝒖𝒊𝒔𝒊𝒕𝒊𝒐𝒏 𝑪𝒐𝒔𝒕
X 100%
𝟐𝟎 𝒚𝒆𝒂𝒓𝒔