This topic is dealt with in Section 10 (1)(nB) of the Act.
This section of the Act deals with the tax implications regarding how benefits received by an employee incurring certain expenditures are to be taxed, as a consequence of the employee’s relocation:
- from one place to another.
- on the appointment of a new employee.
- on the termination of an employee’s employment.
Note 1 – The transferring of an employee who does not require a change of residence is exempt from these provisions.
Note 2 – Where the employer has borne the expenses, the benefits shall be exempt irrespective of whether the employer pays the costs directly to the supplier or reimburses the employee.