Page 10 - Profmark Tax Guide 2025 Digital

■ On assessment the fringe benefit for the tax year is reduced by the ratio of
the distance travelled for business purposes substantiated by a log book
divided by the actual distance travelled during the tax year�
■ On assessment further relief is available for the cost of licence, insurance,
maintenance and fuel for private travel if the full cost thereof has been
borne by the employee and if the distance travelled for private purposes is
substantiated by a log book�

Subsistence allowances and advances
Where an advance or allowance is received by an employee for meals and other
incidental costs, he / she can deduct either:
■ The amount actually spent (limited to the advance or allowance), or
■ For a day trip where employee is not spending at least one night away from
his/her normal place of residence, an amount not exceeding R176�
■ The daily amounts set out in the table below where the employee is obliged
to spend at least one night away from his/her usual place of residence on
business� When the deemed amounts are used, the employee does not have
to produce proof of the amounts spent and the allowance is not subject to
employees’ tax�
Cost 2024 2025 2026
Meals and incidental cost in South Africa R522 R548 R570
Incidental cost only in South Africa R161 R169 R176
Daily amount for travel outside South Africa As per SARS website
Residential accommodation
The fringe benefit to be included in gross income is calculated in the following
different ways, depending on the circumstances:
■ Using a formula less the amount paid by the employee
■ Using the lower of a formula or the cost borne by the employer less the
amount paid by the employee
■ When holiday accommodation has been provided, the fringe benefit will be
the rental cost of the employer or prevailing market rate per day depending
on the circumstances
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