Notice: Motor Dealers

Use of employer-provided motor vehicle | Taxation of benefits

Following NADA directive issued in April 2016 motor vehicle dealers may use the average cost of stock held in trade in the previous year of assessment to determine the fringe benefit for dealership employees that are required to use demonstration vehicles as a ‘tool of trade’.

Kindly note that employees must be required to regularly use multiple vehicles over short periods (i.e. 5 times or more during a year of assessment).

Comments adapted from a Tax Webinar presented by the SAIT (South African Institute of Tax Practitioners) during July 2016

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