You can claim a travel allowance if you travelled for business purposes during the 2023 year of assessment (i.e. 1 March 2022 to 28 February 2023), kept a valid log book and you:
- Received a travel allowance (reflected under source codes 3701 or 3702 on your IRP5); or
- Have a company-provided vehicle (reflected as source codes 3802 or 3816 on your IRP5.); or
- Are a commission earner, independent contractor or sole proprietor.
You cannot claim a deduction if your employer reimbursed you using the SARS prescribed rate per kilometre (R4.64 per kilometre from 1 March 2023), as such amounts are non-taxable. The full amount must still be reflected on the IRP5.
How is this calculated?
A travel expense deduction can be determined in one of the following ways:
- Using actual figures (such as kilometres travelled, wear and tear, insurance, fuel and license fees). The taxpayer would have to provide actual business expenditure and mileage figures which are acceptable to SARS. To do so, the taxpayer would have to keep detailed records; or
- Using actual business kilometres travelled and a deemed cost per kilometre.
What information do I need to claim the deduction?
A logbook needs to be kept, reflecting, at the bare minimum, the following information:
- The date of business travel;
- The business kilometres travelled; and
- The business travel details (where to and for what reason).
Should you wish to use actual figures, receipts and invoices for expenses in relation to the vehicle must also be maintained. You can find a logbook template for the 2023 tax year on SARS’ website here.