• Travel allowance for 2012/2013 tax year

    Posted on March 19, 2012 by PGH Chartered Accountants (S.A.) in Accounting news, Audit news, New companies act, Tax news, VAT News.

    Travelling allowance for 2012/2013 tax year

     

    Rates per kilometer which may be used in determining the allowable deduction for business-travel, where no records of actual costs are kept are determined by using the following table.

     

    Value of the vehicle

    (including VAT) (R)

    Fixed cost

    (R p.a.)

    Fuel cost

    (c/km)

    Maintenance

    cost (c/km)

    0 – 60 000 19 492

    73.7

    25.7
    60 001 – 120 000 38 726

    77.6

    29
    120 001 – 180 000 52 594

    81.5

    32.3
    180 001 – 240 000 66 440

    89.6

    36.9
    240 001 – 300 000 79 185

    102.7

    45.2
    300 001 – 360 000 91 873

    117.1

    53.7
    360 001 – 420 000 105 809

    119.3

    65.2
    420 001 – 480 000 119 683

    133.6

    68.3
    exceeding 480 000 119 683

    133.6

    68.3

    Note:

     

    • 80% of the travelling allowance must be included in the employee’s remuneration for the purposes of calculating PAYE. The percentage is reduced to 20% if the employer is satisfied that at least 80% of the use of the motor vehicle for the tax year will be for business purposes.

     

    • No fuel cost may be claimed if the employee has not borne the full cost of fuel used in the vehicle and no maintenance cost may be claimed if the employee has not borne the full cost of maintaining the vehicle (e.g. if the vehicle is the subject of a maintenance plan).

     

    • The fixed cost must be reduced on a pro-rata basis if the vehicle is used for business purposes for less than a full year.

     

    • The actual distance travelled during a tax year and the distance travelled for business purposes substantiated by a log book are used to determine the costs which may be claimed against a travelling allowance.

     

    Alternatively:

     

    • Where the distance travelled for business purposes does not exceed 8 000 kilometers per annum, no tax is payable on an allowance paid by an employer to an employee up to the rate of 316 cents per kilometer, regardless of the value of the vehicle.

     

    • This alternative is not available if other compensation in the form of an allowance or reimbursement is received from the employer in respect of the vehicle.
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