CAR BENEFIT – SECTION 5 (2B)
Where an employee is provided with a motor vehicle by employer, the chargeable benefit for private use shall be the higher of the rate determined by the Commissioner and the prescribed rate of benefit. Where such vehicle is hired or leased from third party, employees shall be deemed to have received a benefit in that year of income, equal to the cost of hiring or leasing.
The “prescribed rate of benefit” means the following rates for each month on the initial cost of the vehicle:-
• rate – 2% per month of initial cost of the vehicle
N.B: Where an employer has restricted use of the motor vehicle, the Commissioner if satisfied of that fact, shall determine a lower rate of the benefit depending on the usage of the motor vehicle.
