Tax on Leased Vehicles
Many Employers lease vehicles to provide Employees with a vehicle for business travel purposes.
These leased vehicles often come with additional items such as an E-tag, GPS and Fuel charges.
Employers need to determine which of these costs should be:
- Included in the use of a motor vehicle acquired by the Employer via an Operating Lease, and
- Which of these should be included as a normal Fringe Benefit.
To determine this, Employers need to look at the following legislation:
- Section 8(1)(b) of the Income Tax Act.
- Interpretation Note 14 (Issue 5).