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    Benefits

    Company car (use of vehicle)

    A fringe benefit taxed at 3.5% of the determined value per month (3.25% if a maintenance plan is included).

    Full definition

    Use of an employer-provided vehicle is a fringe benefit under paragraph 7 of the Seventh Schedule. The monthly cash equivalent is 3.5% of the determined value of the vehicle (3.25% if a maintenance plan was included when the vehicle was purchased). 80% is subject to PAYE unless the employee's business use is 80%+.

    See also

    Fringe benefit
    Any non-cash benefit provided to an employee — taxed under the Seventh Schedule of the Income Tax Act.
    Travel allowance
    A cash allowance for business travel — 80% is subject to PAYE (20% if 80%+ of travel is business).

    Automate Company car (use of vehicle) in your payroll

    Payroll Africa handles Company car (use of vehicle) calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.

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    Let payroll handle Company car (use of vehicle) for you

    Payroll Africa calculates it automatically every month for South African employers — SARS-aligned, with payslips, EMP201 and IRP5 included.

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