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Updated: Guide for Employers in respect of Allowances
- 09 March 2023
- Accounting
- South African Accounting Academy
The purpose of this document is to assist employers in understanding their obligations relating to allowances paid or payable to their employees.
This basic guide explains the methods to be applied by the employers in respect of allowances paid or payable to employees and includes the legislation requirements as well as examples.
The following Notices were gazetted in this regard:
- Notice 312: Fixing of rate per kilometre in respect of motor vehicles – section 8(1)(b)(ii) and (iii)
- The SARS tax free rate is now R4.64 per kilometre (from 1 March 2023)
- https://www.sars.gov.za/legal-lsec-it-gn-2023-02-notice-3112-gg-48162-budget-2023-rates-per-kilometre-vehicle-3-march-2023/
- Notice 313: Determination of the daily amount in respect of meals and incidental costs for purposes of section 8(1)(c)(ii) (daily & overnight allowance)
- The relevant amounts are now: Only incidental costs @ R161 & Meals and Incidental costs @ R522
- https://www.sars.gov.za/legal-lsec-it-gn-2023-01-notice-3113-gg-48162-budget-2023-subsistence-allowance-rates-daily-overnight-allowance-3-march-2023/
Notice 268 GG 42258 dated 1 March 2019, for the ‘Table: Daily Amount for Travel Outside the Republic’, remains in force effective 1 March 2019 until communicated otherwise. https://www.sars.gov.za/lapd-lsec-it-gn-2019-01-notice-268-gg-42258-1-march-2019-daily-in-respect-of-meals-and-incidental-costs/
Click here to download the Updated Guide:
Relevance to Auditors, Independent Reviewers & Accountants:
- The Income Tax Act is yet another piece of legislation that your clients should consider, so that they are aware of their rights and responsibilities with specific references to SARS’ powers.
- As an auditor, independent reviewer, accountant or tax practitioners you need to be aware of the latest amendments as a result of the Budget Speech.
- As an employer, you should understand your obligations relating to allowances paid or payable to your employees.
- This Guide will assist with the above, and explains the methods to be applied by the employers in respect of allowances paid or payable to employees and includes the legislation requirements as well as examples.
Relevance to Your clients:
- A taxpayer should be aware of the contents of the Income Tax Act.
- Employers should understand their obligations relating to allowances paid or payable to their employees.
- This Guide will assist with the above, and explains the methods to be applied by the employers in respect of allowances paid or payable to employees and includes the legislation requirements as well as examples.
To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update
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