SARS Increases the Maximum Amount for Work-Related Expenses


The maximum tax-free claim for work-related occasional expenses, such as meals has been increased to R452 per day.

Finance minister Tito Mboweni released the adjusted guidelines used by the South African Revenue Service (SARS) in the government newsletter this past week where he introduced the increase of roughly 10%.

According to Business Insider, the amount South Africans can claim for work-related travel with their own vehicles has increased from R3.61 to R3.98 per kilometre at the beginning of March.

The adjusted amount does not include additional parking or toll fees and is effective from 1 March.

This is good news as many South African companies reportedly set the amount of money employees can claim for work-related travel according to the SARS guidelines in order to avoid extra paperwork and additional taxes.

The simplified rate of R3.98 is available for claims that relate to actual kilometres traveled for work purposes and does not require the more complex calculations required where employees are given an advance, or allowance, against which actual costs are not claimed.

For local travel, you can now spend up to R452 on food per day.

James de Villiers wrote that the SARS commissioner, Edward Kieswetter, adjusted the tax-free amount South Africans can claim for work-related accommodation and food.

Food and occasional costs up to R452 per day can now be claimed for travel within South Africa. Where food is provided, the limit for incidental costs now stands at R139 per day.

For travel and accommodation outside of South Africa, SARS reportedly kept the claim amounts unchanged.