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Car Allowance - Available deductions and Documents required

Posted 21 September 2013

My salary was structured in such a way that I have a car allowance of approx R5,5k and my contract states that due to this allowance I will be required to use my personal vehicle for company purposes. The company however includes the full allowance as 100% taxable income - and that my annual tax return will determine the actual taxable portion.

My question is - how will it be determined and what documents do I need to keep in order to have any available deductions? Please note that it is not a travel allowance but a car allowance.

TaxTim Marc TaxTim Marc said:
23 September 2013 at 9:06

You need to keep a logbook detailing all your travels for work and the total amount of km's traveled during the tax year as well as all expenditures made on the car. Receipts of these expenses must be kept. You would include these amounts in the ITR12 Income tax Return, and as your employer says any reduction in the amount owed to SARS will be calculated there.

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