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Lynne says: 30 March 2022 at 11:04 Calculation of fringe benefit tax on a company car. Car owned by the company used for business purposes and a small amount of private (home to work etc) Codes 6020 and 6035 are used. One is for the value of the vehicle and the other is the amount taxable. Does this get added to the taxable income? will code 6035 be the one that contains the taxable portion? |
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TaxTim says: 30 March 2022 at 13:11 The company car fringe benefit should appear on your payslip/IRP5 under source code 3802. The monthly fringe benefit is calculated by taking the cost of your car multiplied by 3.25% (if there is a maintenance plan in place) or 3.5% (with no maintenance plan). The cost of the car must include VAT but exclude finance charges. Remember to keep a logbook reflecting your business travel so that you can claim a deduction to reduce your tax liability when you submit your tax return. Please note SARS does not accept travelling from/to work and from/to home as business travel. Kindly see our blog on Travel Audits for more information on what information must be available on your logbook to qualify for the claim. You will also need a letter from your employer stating that the vehicle is used for business purposes, the vehicle information and the fringe benefits applicable to the employee. |
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