Page 8 - Profmark Tax Guide 2025 Digital

FRINGE BENEFITS

Travelling allowance for the tax year ending 2026
When a travel allowance has been received, the employee must determine the
allowable deduction for business travel� There are two ways in which this could
be done:
■ Using actual business expenditure (The value of the vehicle is limited to
R800 000 for purposes of calculating wear and tear, which must be spread
over seven years, while finance costs are also limited to a debt of R800 000�
For a leased vehicle the instalments in a year of assessment may not exceed
the fixed cost component in the table), or
■ Using a deemed cost per kilometre as per the following table:
WHERE THE VALUE FIXED FUEL COST MAINTENANCE
OF THE VEHICLE IS
(Including VAT) R COST R p.a. c/km COST c/km
0 – 100 000 33,940 146�7 47�4
100 001 – 200 000 60,688 163�8 59�3
200 001 – 300 000 87,497 177�9 65�4
300 001 – 400 000 111,273 191�4 71�4
400 001 – 500 000 135,048 204�8 83�9
500 001 – 600 000 159,934 234�9 98�5
600 001 – 700 000 184,867 238�9 110�5
700 001 – 800 000 211,121 242�9 122�5
exceeding 800 000 211,121 242�9 122�5
Note: The fixed cost must be reduced on a pro-rata basis if the vehicle is used
for business purposes for less than a full year�
The actual distance travelled during a tax year and the distance travelled for
business purposes substantiated by a log book are used to determine the costs
which may be claimed against a travel allowance�
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