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It provides guidance under the Income Tax Act No. 58 of 1962, focusing on paragraph 7 of the Seventh Schedule, including taxable benefit principles, valuation methods for private use, reductions, and circumstances where the private use value is nil.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/interpretation-note-no-72-right-of-use-of-motor-vehicle/296742/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/interpretation-note-no-72-right-of-use-of-motor-vehicle/296742.png","ImageObject",300,407,{"name":92,"@type":93},"Patrick","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-11-01","2026-09-18",true,{"@type":102,"interactionType":103,"userInteractionCount":44},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What is Interpretation Note No. 72 about?","Question",{"text":112,"@type":113},"It provides guidance on income tax consequences for an employee when an employer grants the right of use of a motor vehicle, known as a company car fringe benefit.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Why is the right of use of a motor vehicle treated as taxable income?",{"text":117,"@type":113},"The private or domestic use of a motor vehicle by an employee is regarded as a taxable benefit, and its value is included in the employee’s gross income.",{"name":119,"@type":110,"acceptedAnswer":120},"When do the latest legislative changes for company cars apply?",{"text":121,"@type":113},"The latest legislative changes are effective from 1 March 2013 and apply to years of assessment commencing on or after that date, such as the 2014 year of assessment.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},296742,1790092267,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":44,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":41,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},549758146520,"https://ap-avatar.wpscdn.com/avatar/80002397d8c0411e94?_k=1775819394049821470","INTERPRETATION NOTE: NO. 72  \nDATE: 22 March 2013  \nACT : INCOME TAX ACT NO. 58 OF 1962 (the Act)  \nSECTION : PARAGRAPH 7 OF THE SEVENTH SCHEDULE TO THE ACT  \nSUBJECT : RIGHT OF USE OF MOTOR VEHICLE  \nCONTENTS  \nPAGE  \nPreamble .............................................................................................................................. 2  \n1. Purpose ..................................................................................................................... 2  \n2. Background ............................................................................................................... 2  \n3. The law...................................................................................................................... 2  \n4. Application of the law................................................................................................. 3  \n4.1 Taxable benefit .......................................................................................................... 3  \n4.2 Value of the taxable benefit ....................................................................................... 3  \n4.2.1 Value of private use ................................................................................................... 3  \n4.3 Fixed percentage per month x determined value ....................................................... 4  \n4.3.1 Fixed percentage ....................................................................................................... 4  \n4.3.2 Per month.................................................................................................................. 5  \n4.3.3 Determined value ...................................................................................................... 5  \n4.4 Vehicle held under an operating lease ..................................................................... 10  \n4.5 Reduction of the value of private use on assessment .............................................. 10  \n4.5.1 Right of use of more than one motor vehicle for private purposes ........................... 11  \n4.5.2 Reduction for business use ..................................................................................... 12  \n4.5.3 Reduction when the employee incurs expenditure in relation to the motor vehicle ... 13  \n4.6 Circumstances under which the value of private use is deemed to be nil................. 17  \n4.6.1 Available for use by employees in general............................................................... 17  \n4.6.2 Nature of employee duties ....................................................................................... 18  \n4.7 Consideration .......................................................................................................... 19  \n4.8 Employees’ tax ........................................................................................................ 19  \n4.9 Sundry provisions .................................................................................................... 21  \n4.9.1 Transfer of employer’s rights and obligations under a lease .................................... 21  \n4.9.2 Motor vehicle rented to the employer by the employee, his or her spouse or child  \n– section 8(1)(b)(iv) ................................................................................................. 21  \n4.9.3 Company car and travelling allowance in respect of the same motor vehicle ........... 22  \n4.9.4 Acquisition of an asset – paragraph 2(a) and 5(2) ................................................... 22  \n5. Conclusion .............................................................................................................. 22  \nAnnexure A – The law ......................................................................................................... 24  \nAnnexure B – Extract of income tax regulation: Fixing of rate per kilometre in respect of motor vehicles for the purposes of section 8(1)(b)(ii) and (iii) with","cbCairKY9rRAQyQQ","https://ap.wps.com/l/cbCairKY9rRAQyQQ","pdf",229912,"English","# Purpose\n# Background\n# The law\n# Application of the law\n## Taxable benefit\n## Value of the taxable benefit\n### Value of private use\n### Fixed percentage per month x determined value\n### Vehicle held under an operating lease\n### Reduction of the value of private use on assessment\n### Right of use of more than one motor vehicle for private purposes\n### Reduction for business use\n### Reduction when the employee incurs expenditure\n### Circumstances under which the value of private use is deemed to be nil\n### Available for use by employees in general\n### Nature of employee duties\n## Consideration\n## Employees’ tax\n## Sundry provisions\n### Transfer of employer’s rights and obligations under a lease\n### Motor vehicle rented to the employer by the employee\n### Company car and travelling allowance\n### Acquisition of an asset\n# Conclusion\n# Annexure A – The law\n# Annexure B – Extract of income tax regulation\n# Annexure C – Extract from the Value-Added Tax Act","[{\"question\":\"What is Interpretation Note No. 72 about?\",\"answer\":\"It provides guidance on income tax consequences for an employee when an employer grants the right of use of a motor vehicle, known as a company car fringe benefit.\"},{\"question\":\"Why is the right of use of a motor vehicle treated as taxable income?\",\"answer\":\"The private or domestic use of a motor vehicle by an employee is regarded as a taxable benefit, and its value is included in the employee’s gross income.\"},{\"question\":\"When do the latest legislative changes for company cars apply?\",\"answer\":\"The latest legislative changes are effective from 1 March 2013 and apply to years of assessment commencing on or after that date, such as the 2014 year of assessment.\"}]","Interpretation Note - No. 72 - Right of use of motor vehicle | PDF",1789736210,76]