We have a client that has a motor vehicle on a lease agreement (Like agility plans). We would like to know can we claim the whole monthly rental for the vehicle for the applicable months in the financial tax year the client had the vehicle? We received fe
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
With respect to the rental car, section 8(1)(iiiA)(aa) of the Income Tax Act refers to “a vehicle that is being leased” and then to the total amount of payments in respect of that lease. The ITR12 allows for the lease payments to be captured.
The taxpayer can’t use depreciation in respect of a rental car.