What source code do they use for this allowance on your payslip or IRP5?
Rakssays: 12 January 2016 at 10:20
there is no code on payslip this allowance started in july and I dont have IRP5 yet
TaxTimsays: 12 January 2016 at 21:00
How is the allowance calculated - is it a daily rate?
Rakssays: 13 January 2016 at 9:00
it is a fixed amount paid with my salary. and I am taxed on it
TaxTimsays: 13 January 2016 at 12:00
When you receive your IRP5, make sure the allowance is reflected under source code 3704 or 3713.
Where recipients are obliged to spend at least one night away from their usual place of residence on business and the accommodation to which that allowance or advance relates is in the Republic and the allowance or advance is granted to pay for- â%u20AC¢ meals and incidental costs, an amount of R353 per day is deemed to have been expended; â%u20AC¢ incidental costs only, an amount of R109 for each day which falls within the period is deemed to have been expended
Therefore, when you complete your 2015/2016 tax return, you can claim the applicable rate times by the number of nights you spent away. You can insert the amount under the "other deductions section" of the tax return.
However, any allowance given in excess of these SARS approved deemed rates would be taxable in the your hands.
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