allowances to record their odometer readings
26 February 2009
Pretoria: The South African Revenue Service (SARS) would like to remind all
taxpayers who receive a car allowance to record their odometer readings on
Saturday, 28 February 2009.
The last day of February marks the end of the tax year for individual
taxpayers. Those seeking to claim a business travel deduction in their next
income tax return will require their closing and opening odometer reading in
order to do so.
Taxpayers are also reminded that as announced in February's Budget, the
coming tax year (1 March 2009 to 28 February 2010) is the last year where the
"deeming provision" may be used to calculate a business travel deduction. The
deeming provision allows taxpayers only to provide their total mileage for the
year and are then deemed to have used their vehicle for private travel for the
first 18 000 kilometres with the remainder (up to a maximum of 14 000
kilometres) deemed as business travel. However, this provision was open to
abuse and resulted in excessive deductions which do not match actual business
expenses.
From 1 March 2010, taxpayers seeking to claim a deduction for business
travel will be required to keep a logbook. To help taxpayers get into the habit
of doing so now, SARS will be handing out free logbooks from its branches
countrywide from Monday, 1 March 2009 while stocks last. Taxpayers can also
download an e-logbook from the e-logbook page at http://www.sars.gov.za/home.asp?pid=42105.
Issued by: South African Revenue Service
26 February 2009
Source: South African Revenue Service (http://www.sars.gov.za)
