Perks Tax Guide

Car Scheme Options – General Guide

  1. Company Car – preferable when business kilometres are less than 50% of the total kilometres travelled
  2. Travel Allowance – preferable when business kilometres are more than 50% of the total kilometres travelled.

Tax Treatment Methods

As a travel allowance receiver, you have a choice of two methods of claiming a tax deduction. With both methods, a log book must be kept with business travel records for the year of assessment.

1. Actual Cost Method

When using the ‘actual cost’ calculation, a log book with accurate details of all the actual costs of travelling must be kept. Records must reflect fuel and running expenses, odometer readings, business kilometres, and purpose of each of the business trips.

2. Gazetted Cost Method

With this method, also known as ‘deemed cost’, you calculate your distances travelled for business using the gazetted tables and applying rules and rates per kilometre as set by the Minister of Finance. A deduction is claimed based on the annual gazetted rates per kilometre in respect of fixed running costs depending on the cost of the vehicle. Fixed costs also cover depreciation, interest, insurance, licence and registration fees.


While every care has been taken to ensure accuracy, Bidvest Bank cannot be held liable for errors or omissions, nor any loss as a result of the use of any of the information generated.