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Employee housing for mine workers


Mining companies will be interested in the recently published SARS binding private ruling (BPR 239) which confirms that expenses incurred by mining companies for employee housing can be claimed in terms of mining capital expenditure ("capex") rules. BPR 239 also clarified the tax treatment of an obligatory capital contribution which the two mining companies had to make to a special purpose vehicle (SPV) created to build houses for their employees who were mine workers.