Sars Vehicle Purchase Agreement

In the past, presenting a travel diary with your business and private miles was enough. What we have seen this year is that SARS is asking for the vehicle purchase contract to ensure the price of the vehicle, the date of purchase and to ensure that it is in the taxpayer`s name. This may now present some challenges. For example, if the vehicle is in your spouse`s name, you may need to prove that you are making payments to the vehicle. This can be done through an affidavit or bank statements. The worker can assert claims against the use of a company car, provided that a valid logbook has been kept at the registration of the kilometers of the company, as stated above. The percentage in which the vehicle was used for commercial information may be deducted from the total amount of the ancillary service. When filling out and submitting your IRP5 documents, we learned that you might need to consider the following key points: I`ve also seen that some taxpayers don`t understand why some of their car payments can`t be deducted. As with the rent above, you must be able to clearly indicate the tempering agreement indicating the interest calculated for the vehicle. Also remember that only interest can be deducted as expenses. A person is only entitled to a travel package if he has received such an allowance. If a person is self-employed (individual contractor) or an independent contractor or if they mainly discuss their commissions, tax schedules cannot be used.

On the contrary, article 11a of the Income Tax Act, which provides that it is stated that an amount “actually incurred” must be deducted.

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