Print Page   |   Report Abuse
News & Press: Individuals Tax

New Motor Vehicle Table

16 March 2012   (0 Comments)
Posted by: SAIT Technical
Share |

New Motor Vehicle Table


by Michael Stein

The Minister of Finance has published new rates to be used for the purposes of the travelling allowance under s 8 of the Income Tax Act (see GN 140 Government Gazette 35064 of 24 February 2012). They replace the rates published in 2011 and apply with effect from 1 March 2012.

You are required to reduce the amount of the fixed cost according to the first table when you have used the vehicle for business purposes for less than a full year.The value of the vehicle for the purposes of the table is:

•  If the vehicle was acquired by you, the employee, under a bona fide agreement of sale or exchange concluded by parties dealing at arm’s length, the original cost of the vehicle to you, including sales tax or value-added tax but excluding finance charges or interest payable on account of the acquisition of the vehicle.

• If the vehicle is held by you under a lease regarded as an ‘instalment credit agreement’ for value-added tax purposes or was held by you under such a lease and was acquired by you on the termination of the lease, the cash value of the vehicle for value-added tax purposes. (When value-added tax was paid, it will have been included in the cash value of the vehicle.)

• In any other circumstances, the market value of the vehicle at the time you first obtained it or the right to use it plus any sales tax or value-added tax that would have been payable by you at that time on its market value.

Under the optional alternative basis, the ‘per-kilometre basis’, which may apply only if the distance travelled on business during the tax year – whether in a single vehicle or in more than one vehicle – does not exceed 8 000 kilometres and you have received no other allowance or reimbursement for the vehicle apart from the ‘per-kilometre’ reimbursement, for example, a fixed monthly allowance, the cost is determined at R3,16 per kilometre.

To access the table, click here


WHY REGISTER WITH SAIT?

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.

MINIMUM REQUIREMENTS TO REGISTER

The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

Membership Management Software Powered by YourMembership  ::  Legal