SARS Deemed Travel and Company Cars - Travel Allowances 2014

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<h2>The South African Revenue Service Deemed Travel and Company Cars for Individuals 2014</h2>

 

The deemed rate table for the 2012/2013 tax year is:

Vehicle value (including VAT) Fixed cost in Rand Fuel cost (c/km) Maintenance Cost (c/km)
0 - 80,000 25,946 92.3 27.6
80,001 - 160,000 46,203 103.1 34.6
160,001 - 240,000 66,530 112.0 38.1
240,001 - 320,000 84,351 120.5 41.6
320,001 - 400,000 102,233 128.9 48.8
400,001 - 480,000 120,997 147.9 57.3
480,001 - 560,000 139,760 152.9 71.3
560,001 and above 139,760 152.9 71.3

 

If you have any questions relating to these exemptions / deductions please contact us on 011 447 8823 Today to speak to a consultant for FREE.

 

Company Cars

 

The fringe benefit that will be added to an employee for the private usage of a business vehicle is 3.5% of the determined value of the vehicle. Where the vehicle is the subject of a maintenance plan at the time that the employer acquire the vehicle the taxable value is 3.25% of the determined value. Where the distance travelled for business purposes does not exceed 8000 kilometres per annum, no tax is payable on an allowance paid by an employer to an employee up to the rate of 324 cents per kilometer, regardless of the value of the vehicle. This alternative is not available for other compensation in the form of an allowance or reimbursement is received from the employer in respect of the vehicle. 80% of the travelling allowance must be included in the employee’s remuneration for the purposes of calculating PAYE. The percentage is reduced to 20% if the employer is satisfied that at least 80% of the use of the motor vehicle for the tax year will be for business purposes. No fuel cost may be claimed if the employee has not borne the full cost of fuel used in the vehicle and no maintenance cost may be claimed if the employee has not borne the full cost of maintaining the vehicle (e.g. if the vehicle is covered by a maintenance plan).

 

The fixed cost must be reduced on a pro-rata basis if the vehicle is used for business purposes for less than a full year.

The actual distance travelled during a tax year and the distance travelled for business purposes substantiated by a log book are used to determine the costs which may be claimed against a travelling allowance.

 

Alternatively:

Where the distance travelled for business purposes does not exceed 8 000 kilometres per annum, no tax is payable on an allowance paid by an employer to an employee up to the rate of 330 cents per kilometre, regardless of the value of the vehicle. This alternative is not available if other compensation in the form of an allowance or reimbursement (other than for parking or toll fees) is received from the employer in respect of the vehicle.

 

If you have any questions relating to these exemptions / deductions please contact us on 011 447 8823 Today to speak to a consultant for FREE.