How do I declare an allowance for work trips away from home?
If you are required to travel for work, you may be wondering about the tax implications. Here's how it works.
If you are required to travel for work, you may be wondering about the tax implications – especially if you get an allowance from your employer. Here’s how it works. When, as an employee, you are required to travel for work, your employer will generally provide you with an allowance that you may use to cover costs incurred while travelling. The correct name for this allowance is a subsistence allowance. The nuts and bolts This allowance, for meals and incidental costs, may be tax-free in your hands if as an employee you are required to spend at least one night away from your usual place of residence, and the amount received falls under a threshold amount. There are slightly different implications for travel within South Africa and travel outside of South Africa. Travel within South Africa The South African Revenue Service (SARS) has specified daily rates that should be used to ensure that the allowance is tax-free in the hands of the employee. For the 2019 tax year, the amounts whic...
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