New SARS Subsistence Allowance Rates Effective 1 March 2025

Summary:

SARS has issued income tax notices setting out the New daily and overnight Subsistence allowance amounts, which are effective from 1 March 2025.

Article:

The gazette income tax notices, relate to the:

determination of the daily amount (as vested by section 8(1)(a)(ii)) in respect of meals and incidental costs for purposes of section 8(1)(a)(ii)(aa) (daily allowance) which is now R176 (was R169) per day; and
determination of the daily amount (as vested by section 8(1)(c)(ii)) in respect of meals and incidental costs for purposes of section 8(1)(a)(i)(bb) (overnight allowance) and comprise amounts which shall be deemed to have been actually expended by a person, which is now:
- R176 (was R169) per day for incidental costs only; and
- R570 (was R548) per day for the cost of meals and incidental costs.
  - Where the accommodation is outside the Republic, the amount per day for the cost of meals and incidental costs is determined by using the relevant foreign currency amount as set out in the ‘Table: Daily Amount for Travel Outside the Republic’ under Notice 4458 published in Government Gazette No. 50243 dated 1 March 2024.

The amounts determined in these notices apply in respect of years of assessment commencing on or after 1 March 2025.

Click here to download the Gazetted Notices:

Relevance to Auditors, Independent Reviewers & Accountants:

The Income Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
As an auditor, independent reviewer, an accountant or tax practitioner, you need to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech.
As an employer and taxpayer, you also need to comply with the Income Tax Act in your workplace.

Relevance to Your Clients:

An entity (company or close corporation) has a duty to comply with the Income Tax Act, and directors have to fulfil their duties accordingly, otherwise they could be held liable.
It is important to be aware of the proposed changes to tax legislation that is brought about by the annual budget speech.

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