How travel allowances are taxed in South Africa. The 80/20 rule, logbooks, and how to claim business travel deductions.

Quick answer: Only 80% of a travel allowance is subject to PAYE by default. Keep a detailed logbook to claim business kilometres and potentially reduce your tax further.

How Travel Allowances Are Taxed

By default, 80% of your travel allowance is included in your taxable income for PAYE. The remaining 20% is treated as business use. If you can prove more than 20% business travel with a logbook, you benefit further.

The Importance of a Logbook

SARS requires a detailed logbook recording the date, opening and closing odometer readings, destination and business purpose of every business trip. Without it, you cannot claim business travel.

Claiming Your Deduction

When you file your return, SARS compares your allowance received to your actual business travel. If you travelled more for business than the 20% assumed, you get a refund.

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