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Gert says: 19 January 2016 at 8:49 I am a shareholder in a private company. I get a company car benefit of R800 000 to be used for 1 or 2 cars. I am for best way to structure package. My wife has a R200 000 car and I have a R400 000 car. I do very few business km and ride my private motorcycle to work mainly. I am thinking of switching my car to car allowance. I assume that if I switch then my wife's car is no longer a company car and there are no tax benefits/deductions allowed for her car? As far as I am aware you cannot have a car allowance for 1 vehicle and have other vehicle as a compnay car |
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TaxTim says: 20 January 2016 at 9:15 The car allowance is taxed differently to a travel allowance, but essentially relies on you keeping a logbook of the mileage traveled. IF you receive such a large car allowance and you do not actually make use of it then SARS will actually look at this and tax you more (currently, you are only taxed on 80% of the value of the allowance) and then you could find yourself having to pay in. |
