24 July 2015 at 16:46
I received a reimbursive travel allowance under code 3703 of about 41 000 on my IRP5. I traveled over 8000 km and my rate was above the gazetted rate of 3. 30 for part of the year.
1) Will SARS reduce my taxable travel allowance by 30 555(8000*3. 30).
2) If I kept a log book is they a section that I will enter the deductible amount on my IRP5 and what is the code.
3) Will I get a refund if my deduction amount exceeds my taxable travel allowance amount or is it limited to the the fringe benefit value.
This entry was posted in Tax Q&A and tagged Salary / IRP5, Independent Contractor, Deductions, Commission, Travel Allowance, Audit / Verification, SARS & eFiling. Bookmark the permalink.
25 July 2015 at 14:04
Deductions are always limited to the fringe benefit value so you will not be able to receive more than that. SARS will tax you on the difference so it may be best to click yes to the logbook section if SARS eFiling will let you, otherwise you will have to get your employer to change the IRP5.