Do your Tax with TaxTim and WIN R10,000  More info   T&C's apply


Declaring Subsistence Allowance



My IRP5 does not have a code for the subsistence allowance I got when travelling oversees.I did not use all of the allowance I was given while on the trip and was told I could keep it.How do I declare this in my income tax return?

TaxTim TaxTim says:
20 November 2014 at 7:33

How much were you given and was it per day or just a general amount? Did you provide receipts of expenses to your employer?

Shannon says:
20 November 2014 at 7:50

Hi, I do not remember the original total but I had the equivalent of about R6000 in euros left over.

it was just a general amount given to me to pay for food, taxi / train expenses, clothing, etc. Antthing I might need.

I did not as far as I remember give any receipts to the company as I did not want to claim anything from them. The money they gave me was meant to cover any costs.

Regards,
Shannon.

TaxTim TaxTim says:
20 November 2014 at 8:13

Which country did you travel to?

TaxTim TaxTim says:
20 November 2014 at 8:13

And for how many days?

Shannon says:
20 November 2014 at 12:55

I went to Austria and Amsterdam on a business trip. Spending about a week
in total. So about two full days at each of them and plane trips in
between. From what I can remember anyway.

Why is that important?

A colleague of mine thinks this is possibly just counted as expenses. Is that
right?

TaxTim TaxTim says:
20 November 2014 at 16:39

SARS allows a daily rate per country for subsistence allowance to be tax free, anything over that needs to be taxed in your hands. We will provide the rate shortly.

Shannon says:
20 November 2014 at 17:21

I had a feeling it might be something like that. So if it is tax free do I not need to declare it at all?
I'll have to double check the days in each country to be sure. Does it only count if it's a full day? For instance some days were travelling days spent partly on planes and then arriving at destination.

TaxTim TaxTim says:
21 November 2014 at 10:57

As long as you are away more than 24hrs in total it counts. IF tax free then you can leave it out.

Shannon says:
21 November 2014 at 12:21

Great. Thanks so much for all your help.

TaxTim TaxTim says:
21 November 2014 at 13:44

Only a pleasure!

This entry was posted in Tax Q&A and tagged , , , , . Bookmark the permalink.




Submit your tax return right here!
Get started

 Do Your Tax Return Easily
 Avoid penalties
 Maximise your refund

Answer simple questions about your incomes and expenses. TaxTim does the rest. Just click click, submit.

Make tax easy

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →

Get SARS Tax Deadlines in your Inbox
We'll tell you when you need to file, along with tax tips and updates.