The South African Revenue Service (SARS) has issued a guide for employers in respect of allowances. The purpose of this guide is to assist employers in understanding their obligations relating to allowances paid or payable to their employees. The guide explains the methods to be applied by the employers in respect of allowances paid or payable to employees and includes the legislative requirements as well as examples.
The guide deals, amongst others, with the following:
- subsistence allowance;
- amounts deemed to be expended;
- employer borne expenses;
- employees' tax;
- travel allowance;
- vehicle let to the employer;
- travel allowance reimbursement;
- allowances to a holder of a public office; and
- portion of salary deemed to be a public office allowance.