Lungile's employer contributed R1 900 per month to his medical aid scheme on his behalf. Lungile also contributed R1 700 per month. Calculate the taxable portion of Lungile's fringe benefit for the year of assessment.a.R22 800b.R43 200c.R20 400d.R3 600
Question
Lungile's employer contributed R1 900 per month to his medical aid scheme on his behalf. Lungile also contributed R1 700 per month. Calculate the taxable portion of Lungile's fringe benefit for the year of assessment.a.R22 800b.R43 200c.R20 400d.R3 600
Solution
The taxable portion of Lungile's fringe benefit is calculated based on his employer's contribution to his medical aid scheme.
Here are the steps to calculate it:
- Determine the employer's monthly contribution: R1 900
- Multiply this amount by 12 to get the annual contribution: R1 900 x 12 = R22 800
So, the taxable portion of Lungile's fringe benefit for the year of assessment is R22 800. Therefore, the correct answer is a. R22 800.
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