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How do I calculate fringe benefit tax on my vehicle?

Posted 21 May 2013 under Tax Questions



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vehicle was purchased 2009 on hp, value including vat R433000.00 deposit R95000.00, financedamount R379000I use the car daily to go to work/home but am on clients sites most days for business.not sure how to work out paye monthly on this?rose

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TaxTimTaxTim says:
21 May 2013 at 17:05

Are you paid a monthly travel allowance or did the company buy you the car?


Rose says:
22 May 2013 at 9:57

The company owns the car, I own the company, I use the vehicle to go to & from work, then during
the day to go to clients sites.


TaxTimTaxTim says:
22 May 2013 at 15:15

If you are using what is called an employer provided vehicle then the calculation is as follows:

"Fixed percentage per month x the determined value of the motor vehicle"

However if the car was bought under an operating lease then the cost FB to you would be the cost of lease payments + any fuel expenditure.

For the first option the rate is 3.25% if there is a maintenance plan or 3.5% if there is not. The Value of the vehicle does not include the interest component so I'm am assuming R379 000 for this purpose. The value must also be depreciated by 15% per annum for use each year.This can only happen for completed years. So please check the number of months and completed years of purchase.

You will need to give me the value of the car at the appropriate date for me to determine the FB unless you search for "Interpretation Note No. 14" on the SARS website to get the correct Fixed Cost.


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