MJ Minter

Reimbursive Travel Allowance

Written on 08/01/2018
Profmark Team


A reimbursive travel allowance is where an allowance or advance is based on the actual distance travelled for business purposes (that is excluding private use). Such an allowance is subject to a prescribed rate per kilometre of R3.61 per kilometre with effect from 1 March 2018. Historically this allowance was limited to 12 000 km per annum, whereas it is now unlimited subject to actual business kilometres travelled.

Some key points to note:

  • Where the reimbursive allowance does not exceed the prescribed rate per kilometre AND no other compensation is paid to the employee, the amount is not subject to employees' tax, but the full amount must be reflected on the IRP5 certificate.
  • Where the reimbursive allowance does not exceed the prescribed rate per kilometre however other compensation is paid to the employee, the amount is not subject to employees' tax, but the full amount must be reflected on the IRP5 certificate.
  • Where the reimbursive allowance exceeds the prescribed rate per kilometre (irrespective of the kilometres travelled), the full amount above the prescribed rate is subject to employees’ tax.
  • Where the reimbursive allowance exceeds the prescribed rate per kilometre (irrespective of the kilometres travelled) and other compensation was paid (travel allowance), the full amount above the prescribed rate is subject to employees’ tax.

Should you have any queries regarding reimbursive travel allowances please do not hesitate to contact us for professional advice.