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Hi Sir,
I have a question on the followings:
1. If an employer provides a motorbike to an employee for private use, do we calculate taxable benefit on use at 20% of the cost of the motorbike?
2. If the employer provides fuel for the motorbike provided to the employee for private use, do we calculate taxable benefit on fuel at 20% of the cost of petrol?
3. If the motorbike made available for private use is then acquired by the employee, do we calculate taxable benefit on acquisition using Market value at acquisition less the price paid by the employee?
Thank you very much in advance
Hi Sir,
I have a question on the followings:
1. If an employer provides a motorbike to an employee for private use, do we calculate taxable benefit on use at 20% of the cost of the motorbike?
2. If the employer provides fuel for the motorbike provided to the employee for private use, do we calculate taxable benefit on fuel at 20% of the cost of petrol?
3. If the motorbike made available for private use is then acquired by the employee, do we calculate taxable benefit on acquisition using Market value at acquisition less the price paid by the employee?
Thank you very much in advance
The provision of a motor bike for the private use by an employee should be treated as per “Any other asset made available for private use” for both the use of the asset (the 20% rule) and the transfer of the asset to the employee using the higher of its OMV or tax wdv at time of transfer compared to the price paid. In respect of any fuel costs I would assess on the cost to the employer of the fuel for private use
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