Binding private ruling 363: Value of the supply of services to employees

The ruling states that these employees may from time to time make investments in investment funds managed by the employer (i.e. the asset management company). The employer does, however, not charge the employees any asset management service fees for the administration of these investments.

SARS ruled that the value of the supply of the asset management services as contemplated in section 10(13) read with section 9(7) of the VAT Act will be the cash equivalent as determined in paragraph 10(1)(b) of the Seventh Schedule to the Act.

It was also ruled that the cash equivalent of the asset management services as contemplated in paragraph 10(1)(b) of the Seventh Schedule is the marginal cost of rendering those asset management services to the employees.

Find a copy of BPR 363 here.

12/06/2021