Fixed Travel Allowances
As from 1 March 2010, 80% of the fixed travel allowance is subject to PAYE. As from 1 March 2011, where the employer is satisfied that at least 80% of the use of the vehicle for the year of assessment will be for business purposes, the inclusion rate may be limited to 20%. The full allowance is disclosed on the employee's IRP5 certificate, irrespective of the quantum of business travel.
Reimbursive Travel Expenses
Where an employee receives a reimbursement based on the actual business kilometres travelled, no other compensation is paid to the employee and the costs are calculated in accordance with the prescribed rate of 316 cents (2012: 305 cents) per kilometre, no employees tax need be deducted, provided the business travel does not exceed 8 000 kilometres per annum. The reimbursement must be disclosed under code 3703 on the IRP5 certificate. No PAYE is withheld and the amount is not subject to taxation on assessment. If the business kilometers travelled exceed 8 000 kilometers per year, or if the reimburse rate per kilometer exceeds the prescribed rate, or if other compensation is paid to the employee, the allowance must be disclosed separately under code 3702 on the IRP5 certificate. No PAYE is withheld but the amount is subject to taxation on assessment.