|
John says: 26 May 2016 at 11:00 If I own a second vehicle and use that second vehicle 100% as a Taxi. Would the tax be payable on only the income or payable on income - (minus) expenses? For example, monthly costs breakdown as follows: Expenses: Vehicle Repayment Costs - R1500 / Vehicle Insurance: R1100 / Vehicle Tracking Costs: R100 // Total: R 2,700. 00 Income: R 8,000. 00 Income (R 8,000. 00) - Expenses (R 2,700. 00) = R 5,300. 00 My question is. Would I pay tax on the income of R 8000 before deducting expenses. Or would tax be payable on the post expense deduction - R 5,300? Pleased to hear your response. Furthermore If the vehicle was purchased in Nov - 2015 for R119,000. 00 what would happen with the R 7,933. 00 Depreciation costs for 2016, would this also be tax deductible. As a side note, I have a permanent job, so this would be secondary income. Thanks Best Regards |
|
TaxTim says: 26 May 2016 at 13:41 Tax would be payable on the net income i.e income less expenses. You can't however deduct the full vehicle repayment costs - only the interest (finance charges) portion can be claimed. You can also claim wear and tear (depreciation) - see our Wear and Tear Calculator to work out amount to be claimed. You would need to declare this additional income in your tax return within the section "Local, Business Trade and Professional Income" and assuming your total earnings (i.e. salary plus taxi business) are above R75,000 for the year you would need to register as a Provisional Taxpayer Am I a Provisional taxpayer? Please Register for TaxTim and let us assist you with the completion and submission of your tax return to SARS. |
Do Your Tax Return Easily