Fringe benefit tax on company car

By Marc Sevitz · Updated

Hi Tim,

I have driven a company owned and paid-for motor vehicle so pay fringe benefit tax based on the value of the car when it was purchased (new). Should that value be adjusted as the motor vehicle is no longer worth that much? How do I go about it to ensure it's always up to date? Thanks a mil!
TaxTim Marc

TaxTim Marc said:
26 November 2012 at 17:13

The value will always be based on the cost/cash value of the vehicle and how many years old it is. When you enter the details on eFiling, the SARS calculator works this out for you and adjusts the amount deducted from the travel allowance/right of use of the car based on the age and value. They have inbuilt tables for this.

I hope you kept a logbook! Try our free mobile phone logbook: https://www.taxtim.com/za/free-sars-logbook.php