Botswana | How is the taxable portion of the Automated Company Car FB component calculated?
Step 1: Create the Automated Company Car FB component on company level.
Navigate > Configuration > Payroll > Payroll Config > Payroll Components
Determine the
value of the car and place it in the bracket. In this case, the value of the
car is 223984,82 which falls in the last bracket of 200 001 and above.
​Step 2: Determine the
taxable value (benefit) by applying the relevant bracket. In the example: ((223984,83 - 200 000) x 15%) + 10 000 = 13597,72
Step 3: Determine if
the fuel cost is borne by the employee or employer. If the fuel cost is borne
by the employee, reduce the taxable value (benefit) calculated in step 2 with
the 'fuel cost adjustment value' of the relevant bracket. If the fuel is borne
by the employer then the full taxable value (benefit) in Step 2 should be taxed
and no reduction is allowed. In this example, the full value of 13 597,72
should be taxed.
Navigate > Employee > Payroll Processing > Recurring Payroll Components > Fringe Benefits
Step 4: Divide the
taxable value (which is an annual value) by the pay periods in the tax year. In
this example, divide by 12 months to get a taxable value of 1 133,14 per month.
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