If your employer reimburse you for business travel, kindly take note of the amendments made on 1 March 2018.
The 12 000km limitation has been removed and the rate per kilometre was increased to R3.61. This entitles you to receive a tax-free reimbursement based on actual business travel. However note that if your employer reimburse you at a rate higher than the prescribed rate, the difference will be subject to tax.
This disclosure to SARS on your IRP5 tax certificate is important as it will indicate the reimbursement amount and whether it is taxable or not.
Notify your employer to ensure that they are aware of the amendments.
This notice was published by Tracey Jones, a registered Tax Practitioner and Director of C2M Tax Assurance. Should you require assistance contact Tracey Jones on +27 21 914 0261 or email email@example.com.
Also read: Tax Planning for 2018/2019