Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.
Try Tim Now

Employee PAYE implications for car repayments on company cars?

Posted 23 June 2015 under Tax Questions



Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
ImthePoPo says:
29 May 2015 at 0:40

I pay R3700 as a car repayment for one of my employees. Is this full payment part of his salary, or should I only allocate a portion? It seems unfair that he takes the entire amount into his salary and therefore incurs a higher PAYE, when the car remains my property.

This entry was posted in Tax Questions and tagged , , , , , , . Bookmark the permalink.

TaxTimTaxTim says:
29 May 2015 at 12:19

The law is that he will have the value of the car multiplied by 3.25% included in his return as a fringe benefit - you then take 80% of that total amount and include it in his return. You own the car, but the taxpayer/employee will be the one using the vehicle so needs to be taxed because he gets the benefit. If he keeps a logbook then when he submits his tax return to SARS he will be allowed the business mileage traveled as a deduction.


Get Tax Deadline Reminders, News and Tips
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →