As from 1 March 2015, the determined value in calculating the fringe benefit on the use of a company vehicle is no longer based on the cost to the employer but on the retail market value. A regulation will be issued by the Minister of Finance in a Gazette to define the retail market value.
This change is only applicable in respect of vehicles acquired on or after 1 March 2015. Therefore, employees who currently have the right of use of a motor vehicle will be unaffected.