CATEGORIES
- (4) Negotiating Tax Debt and Payment Arrangements with SARS
- (2)Account / Profile
- (551)Accounting
- (2)Accounting and Finance
- (29)Audit
- (156)Auditing and Assurance
- (1)Business
- (1)Business Management
- (3)Business Rescue
- (102)CIPC
- (7)Compliance
- (18)Ethics and Professionalism
- (46)Financial Reporting
- (1)Government Funding Applications
- (4)Guides
- (1)Individuals Tax
- (27)Law
- (37)Legal and Compliance
- (2)Management
- (12)Miscellaneous
- (29)Money Laundering
- (1)Personal & Professional Development
- (2)Practice Management
- (2)Professional Ethics
- (3)Public Sector
- (145)Regulatory Compliance and Legislation
- (41)SARS Issues
- (28)Sustainability Reporting
- (42)Tax
- (1)Tax Update
- (9)Technology
- (1)Wills, Estates & Trusts
- Show All
New SARS Tax free rate per km
- 02 March 2026
- Tax
- South African Accounting Academy
Summary:
SARS has issued an income tax notice setting out the New SARS rate per kilometre in respect of motor vehicles, which is effective from 1 March 2026.
Article:
The new tax free rate is R4,95 (was R4,76) per km, and is effective for years of assessment commencing on or after 1 March 2026.
The gazetted income tax notice, relates to the fixing of rate per kilometre in respect of motor vehicles – section 8(1)(b)(ii) and (iii), and sets out the following in respect of the travel allowance:
- Definition
- Determination of rate per kilometre
- Cost scale
- Simplified method (which represents the tax free rate)
- Effective date
Click here to download the Gazetted notice:
Relevance to Auditors, Independent Reviewers & Accountants:
- The Income Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, independent reviewer, an accountant or tax practitioner, you need to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech.
- As an employer and taxpayer, you also need to comply with the Income Tax Act in your workplace.
Relevance to Your clients:
- An entity (company or close corporation) has a duty to comply with the Income Tax Act, and directors have to fulfil their duties accordingly, otherwise they could be held liable.
- It is important to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech.
0 COMMENTS
There are not comments for this article at the moment, check back later.
LEAVE A COMMENT
You must be logged in to add a comment, log in now.