chattychat, i would imagine you may eat your words. my thoughts may indeed be worth more than your uncommon knowledge...but i think i did make a mistake in my conclusion on the percentages, so my apologies, i will illustrate and also clarify : SARS has 2 inclusion rates for this fringe benefit tax, 20 and 80%. if you can prove to SARS your biz mileage is 80% of total mileage or more, you will in fact be allowed to apply the 20% inclusion. assume your car DV is 250 000 (incl VAT but excl finance charges), the FB rate is 3.5 % (3.25% if a maintenance plan is included) , 250 000*3.5% = 8750 (105 000 pa) at > 80% biz travel, you will only pay tax on 1750 per month else you will pay tax on 7000 bucks per month. at the end of the year : total FB value 105 000 (tax @ 40% on 84 000 = 33 600) less biz travel 70 909 (15600 / 23100 * 105 000) Value of FB on assess 34 091 (in tax terms @ 40% 13 636-40) Tax refund (19 963-60) preston made another point. additionally, IF you have incurred expenses like license, insurance and fuel then you can claim those in proportion to your biz mileage as well. (ie 67 odd % of the rand amounts) all above is useless if you do not compile a logbook. that is a MUST. for those that dont, they will have to pay in the extra taxes over and above the inclusion rate applied.
... View more