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SARS Motor Vehicle Costs Determined Rate (Eff: Mar'2013)

SARS specifies certain parameters to determine the costs of owning and running a Motor Vehicle.
This information is used in determining certain allowable deductions in calculating PAYE on a Travel Allowance, but more recently in determining the Expended Portion of a Company Car Benefit or Travel Allowance, which may be taken as an Allowable Deduction against Taxable Income at your Assessment.

Although the Employer has little leeway in determining PAYE on a Company Car Benefit or Travel Allowance, does it provide information on what can be expected on Assessment by SARS of the Employee's Tax Return, and how best to structure these items.

This page calculates the Determined Rate per Kilometer and the Determined Rate per Month, for a given Total and Business Kilometers per month of travel. Parameters are Vehicle Value and whether the Business or the Employee pays for the Fuel and Maintenance.

Vehicle Value Co. pays for petrol Co. pays for maintenance

Take note that in order to claim any Expended Costs as an Allowable Deduction, must your claim be supported by a Logbook of travelling for Business Purposes.

Pierre Leon Myburgh
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