Com­pany car taxed more

The Witness - Wheels - - MO­TOR­ING -

THE tax on new or used com­pany cars ben­e­fits have been amended and, with ef­fect from Sun­day, March 1 the fringe ben­e­fit tax will be based on the higher, listed re­tail value of ve­hi­cles, not their dis­counted fleet prices.

Ve­hi­cles bought on or be­fore Satur­day will still be taxed on the lower value.

The monthly fringe ben­e­fit, for tax pur­poses, for em­ploy­ees is deemed to be 3,5% of the “de­ter­mined value” of the ve­hi­cle.

Na­tional Trea­sury/the SA Rev­enue Ser­vices are ex­pected to is­sue the Tax­a­tion Laws Amend­ment Act 2014 reg­u­la­tions next week to de­fine “re­tail mar­ket value”.

— Wit­ness Re­porter.

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