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Deductions for travel expenditure in the case of a sole trader or one-shareholder company

29 October 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: When you’ve got your own company (whether it is a sole proprietor or a registered company), are you allowed to still claim your travel expenditure on the actual expenses? Do we need to deduct a certain percentage for private use? No logbook is kept, and our client doesn’t want to keep a logbook. Can't a sole proprietor deduct a certain percentage as deemed private use?  

A: The ability to make a deduction in respect of travelling on business differs between a sole proprietor and a company.  For a sole proprietor the deduction must be adjusted (in terms of section 23) to account for the private use by the owner.  For both the deductions are allowed in terms of section 11(a), 11(d) 11(e) and 24J, unless the vehicle is owned by the shareholder or employee of the company.  If so, an allowance is normally used or the cost is reimbursed.  

In terms of the current SARS practice a logbook is required to prove the business (or private use).  If no logbook is kept the deduction can’t be made by the sole proprietor or employee (against an allowance).  

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


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