Mar 15, 2024 1 min read

South Africa – Subsistence & Travel Allowance Thresholds March 2024

South African Revenue Services (SARS) issued updated guide for employers in respect of allowances. Effective from 1st March 2024, the thresholds for exemption on allowances are mentioned below.

Changes in thresholds for Subsistence Allowance

When the employee spends a part of a day away from his usual place of work, domestic per diem mentioned below is exempt from income tax.

Allowance2024 Domestic (ZAR)2023 Domestic (ZAR)2024 Foreign (ZAR)2023 Foreign (ZAR)
Only incidental cost exempt from income tax169161Prescribed rate *Prescribed rate *
Meal and Incidental cost exempt from income tax548522Prescribed rate *Prescribed rate *

* SARS has prescribed foreign per diem in respect of each country effective from March 2024 under annexure “PAYE-GEN-01-G03-A02”.

Income code for IRP5/IT3(a):

ScenarioLocal TravelForeign TravelReimbursement
Payment exceeds the threshold3704
(total amount is reported)
(total amount is reported)
(the part which is subjected to tax is reported)
Payment does not exceed the threshold37143764NA

Changes in thresholds for Travel Allowance

For travel allowance, the following two situations are envisaged, namely-

AllowanceMarch 2024
(in ZAR)
March 2023
(in ZAR)
Income Code
Fixed travel allowance exempts from tax20%20%3701
Fixed travel allowance subjects to tax
(Note: When employer is satisfied that at least 80% of the use of the motor vehicle will be for business purposes, then only 20% of the allowance is subject to tax)
Reimbursement at per km exempts from tax4.844.643702
Reimbursement at per km subjects to taxAmount above the thresholdAmount above the threshold3722
Exemption from tax when reimbursement is not more than threshold and no other compensation is paid (travel allowance) 100%100%3703

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

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South Africa -Subsistence & Travel Allowance Thresholds March 2024

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