Page 10 - Nexia Cape Town 2018 TG Digital
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■ 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
■ The daily amounts set out in the table below� These amounts can only be
used 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 2017 2018 2019
Meals and incidental cost in South Africa R372 R397 R416
Incidental cost only in South Africa R115 R122 R128
Daily amount for travel outside South Africa As per SARS website
Residential accommodation
A benefit arises where an employee has been provided with 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
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