Petrol cards and tax thereof

[Rem15]

Just want you to double check if this is in fact correct. Currently everybody that have been issued with petrol cards are being taxed on a monthly basis on 100% of the usage, although the majority is for company purposes, I don’t know but this does not seem correct to me. Surely an individual should be taxed on only private usage.

The scenario currently is that we have external reps that don’t want to cover the area, as the increased fuel bill will negatively affect their monthly employee tax.

Please check if the individuals should pay tax on all the petrol used or only personal use.

 

[KalMaverick]

As far as I understand petrol cards are treated the same as a travel allowance.

(s1 "remuneration" def. (cA) 4th Schedule Income Tax Act).
80% of the amount will be included in the PAYE calculation unless the employer is satisfied that more than 80% is used for business purposes then only 20% is included in the calculation.

However that's not what you're "taxed" on, this is purely for PAYE purposes. When it comes to assessment time then you get taxed and if proper records are kept then it will be on private usage only.