This week I’d like to chat about travel reimbursements for KM’s traveled. Do you know what the rate is and how it works?

This is what SARS has to say: “Where an allowance or advance is based on the actual distance traveled by the employee for business purposes, no tax is payable on an allowance paid by an employer to an employee up to the rate of 361 cents per kilometre, regardless of the value of the vehicle. However, this alternative is not available if other compensation in the form of an allowance or reimbursement (other than for parking or toll fees) is received from the employer in respect of the vehicle.”

Basically this means that if you use your vehicle for company travel (you have to keep a log book detailing all of the kilometres and trips), you will be reimbursed R3.61 per KM, that is not tax deductible, if you pay for the fuel and maintenance of your vehicle yourself.

Let me know if you have any other tax or payroll related questions and I’d be more than happy to assist.

Call Now Button