“remuneration proxy”, in relation to a year of assessment, means the remuneration, as defined in paragraph 1 of the Fourth Schedule, derived by an employee from an employer during the year of assessment immediately preceding that year of assessment, other than the cash equivalent of the value of a taxable benefit derived from the occupation of residential accommodation as contemplated in subparagraph (3) of paragraph 9 of the Seventh Schedule in the application of that subparagraph: Provided that-

[Words preceding the proviso substituted by section 3 of Act 25 of 2015 and section 5 of Act 15 of 2016 effective 1 March 2017 in respect of years of assessment ending on or after that date]

(a)     where during a portion of such preceding year the employee was not in the employment of the employer or of any associated institution in relation to the employer, the remuneration proxy as respects that employee must be deemed to be an amount which bears to the amount of the employee’s remuneration for the portion of such preceding year during which the employee was in such employment the same ratio as the period of 365 days bears to the number of days in such last-mentioned portion;

(b)     where during the whole of such preceding year, the employee was not in the employment of the employer or of any associated  institution in relation to the employer, the remuneration proxy as respects that employee must be deemed to be an amount which  bears to the employee’s remuneration during the first month during which the employee was in the employment of the employer  the same ratio as 365 days bears to the number of days during which the employee was in such employment;