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Company car fringe benefit
If your employer gives you a car, a share of its value is added to your taxable pay each month. You can reduce it on assessment with a logbook of business kilometres.
Tax on the car a month (PAYE)R4,086.17Taxable benefit R14,625 a month
- Monthly taxable valueR14,625.00
- Put through PAYE80%
- Tax through PAYE for the yearR49,034
How it works, with your numbers
- 3.25% of R450,000 a month (lower rate because of the maintenance plan) = R14,625.00.
- Your employer puts 80% of that through PAYE: R140,400 for the year, costing R49,034 in tax.
- Add business kilometres from a logbook to see the reduction on assessment.
Good to know
- If you pay for fuel or maintenance yourself, those costs can reduce the benefit too, with records.
Uses SARS rates for the 2027 tax year. For illustration only. This is a guideline to help you plan, not tax advice: a registered tax practitioner must review and approve the final figures before you file.