There are many options to claim for business kilometers for tax purposes, subjected to rules from SARS. If a client wants to claim for tax purposes, he needs to receive a travelling allowance.
SARS Saving Example Tax Year 2008/2009:
If you don't submit a logbook, the formula works as follows:-
Only 32000 km can be claimed. 18000 km will be treated as private kilometers, thus only 14000 km can be claimed for business purposes.
Example
48000 km for business.
Private kilometers for the year are 12000km.
Total 60000
Value of the vehicle is R190000.00
With a logbook you will be taxed in a lower tax bracket, thus saving even more money.
WITH LOGBOOK |
| 58334 |
x |
365 |
|
0.97 |
| --------- |
|
------ |
= |
| 60000 |
x |
365 |
|
|
| |
| 0.97 + 0.659 + 0.438 = R2.07 |
| R20.7 x 4800 = R99 360 |
| R99360 can be claimed |
| |
Travelling allowance of
R8300 p/m = R99 600 per year |
| |
| R99 360 x 40% = R39 744 |
| |
| R99 360.00 |
|
| R39 744.00 |
+ |
| ---------------- |
|
| R139 104.00 |
|
| ========= |
|
|
|
|
WITHOUT LOGBOOK |
| 58334 |
x |
365 |
|
0.97 |
| --------- |
|
------ |
= |
| 60000 |
x |
365 |
|
|
| |
| 0.97 + 0.659 + 0.438 = R2.07 |
| |
| Of the 60000km travelled, only 32000km can be claimed of which 18000km will be deemed as private, thus only 14000km. |
| |
| 2.07 x 1400 = R28 980 |
| |
| R28 980 x 40% = R11 592 |
| |
| R28 980.00 |
|
| R11 592.00 |
+ |
| ---------------- |
|
| R40 572.00 |
|
| ========= |
|
|
|
|
Difference between logbook and no logbook R98 532.00 |
|
WITH LOGBOOK |
| R139 104 |
|
|
| |
|
|
| 4 250.00 |
|
Purchase & installation |
| 1 620.00 |
+ |
Year Premium |
| ----------- |
|
|
| R5 870.00 |
|
|
| |
|
|
| R139 104.00 |
|
|
| 5 870.00 |
- |
|
| --------------- |
|
|
| R133 234.00 |
|
|
|
|
|
|
| R133 234 |
|
|
| 40 572 |
- |
| ----------- |
|
| R92 662 |
|
|
|
| R139 104 |
|
|
| 1 620 |
- |
| ----------- |
|
| R137 484 |
|
| 40 572 |
- |
| ----------- |
|
| R96 912 |
|
|
|
