The prescribed rate per kilometre is basically an amount that you are allowed to claim as a business expense when you use your own car in your business.
What is the prescribed rate per kilometre in South Africa?
The prescribed rate per kilometre is basically an amount that you are allowed to claim as a business expense when you use your own car in your business.
The Prescribed Rate per km for the 2019/2020 tax year is R3.82
The Prescribed Rate (PR) is the maximum amount of money that you can claim for travel in your vehicle rather than having to keep detailed records of all trips and distances travelled. It’s more convenient and easy to track because it’s based on kilometres travelled, not time spent travelling or actual expenses incurred while driving around town or country!
The maximum amount for travel (including accommodation and meals) that may be claimed using the rates listed below is R3 300 per month.
If you have opted to claim your travel allowance as a tax-free reimbursement from your employer, it is important to note that this will not affect your benefits in terms of the Basic Conditions of Employment Act.
If a taxpayer uses his or her own car to travel from home to work and back, there will be no travel allowance to which he or she would have been entitled if he or she had used public transport. Section: Since it’s not just the cost of petrol that is considered, but also wear and tear on the car and its accessory life, this method should produce a fairer result than using the cost of fuel alone.
