MartinMorrison
Senior Member
And HXX ....
Cape Town - As introduced in the February 2005 Budget, the National Treasury has introduced substantial revisions to the treatment of motor vehicle allowances and company cars, according to the latest Medium-Term Budget Policy Statement (MTBPS).
Introducing the MTBPS in parliament on Tuesday, the Treasury said the deemed annual private kilometre figure where actual travel is not recorded has been raised to 16 000 from 14 000 for individuals in the 2005/06 tax year, and will increase to 18 000km in 2006/07.
As of March 1 2005, the deemed method for calculating fixed business travel cost was adjusted by introducing a residual value element and by capping the car value at R360 000.
The monthly fringe benefits in relation to a company car would be increased from 1.8% to 2.5% with effect from March 1 2006, the Treasury added.
Where an individual with a company car is required to pay for fuel, the deemed monthly fringe benefit will be decreased by 0.22 percentage points and by a further 0.18 percentage points where such an individual is also responsible for the maintenance of the vehicle.