News FlashesFebruary 28, 2024

CRS News Flash 28 February 2024 – SOUTH AFRICA – Rates in respect of motor vehicles and the AA rate

FEBRUARY 2024 – SOUTH AFRICA
RATES IN RESPECT OF MOTOR VEHICLES AND THE AA RATE

It is important that employers note the following:

 

SARS rate per kilometre in respect of motor vehicles

Following the 2024/2025 Budget Speech on 21 February 2024, the Minister of Finance has determined that the rate per kilometre referred to in Section 8(1)(b)(ii) and (iii) of the Income Tax Act must be amended for the 2024/2025 tax year.

A notice stipulating the rates was published on SARS’s website, effective 1 March 2024.

Rates per kilometre, which may be used in determining the allowable deduction for business travel against an allowance or advance where actual costs are not claimed, are determined using the following table:

AA rate per kilometre

Where the reimbursed rate exceeds the prescribed rate of R4.84 (previously R4.64) cents per kilometre, irrespective of the business kilometres travelled, there is an inclusion in remuneration for PAYE purposes. The full inclusion amount is subject to PAYE, unlike the fixed travel allowance where only 80% of the amount is subject to PAYE.

 

However, this alternative is not available if other compensation in the form of an allowance or reimbursement (other than for parking or toll fees) is received from the employer in respect of the vehicle.

 

To view the SARS notice, follow the link.

 

© 2024 CRS Technologies (Pty)Ltd. All Rights Reserved.

2024/2025 Tax Guide


Download your copy of the CRS 2024/2025 Tax Guide

    This will close in 0 seconds

    We use cookies to ensure that we give you the best experience on our website.