Transport allowance

SUGGESTED

Good Day,

We have consolidated some of our branches and we need to provide the effected employees with a small transport allowance monthly (not reimburse, upfront - to pay the additional taxi fair to the new branch)

How must this be declared on the payslip for IRP5 purpose (IRP5 Code).

Thank you

  • 0
    SUGGESTED

    Good Day Annalize

    Private travel includes travelling by the employee between his place of residence and his place of employment or business, as well as any other
    travelling done for his private purposes.

    It is therefore suggested that this allowance will be taxed as a normal allowance.

    Normal allowances are taxed against IRP5 code 3601 or 3713. Please consult with a tax practitioner on the correct option to use as per your company.

    You may also refer to the Payroll Pocket guide on this topic.

    Payroll Pocket Guide 2020-2021

    This document includes amendments to the Income Tax Act (1962) up to and including the Taxation Laws Amendment Act 2019, and the Tax Administration Laws Amendment Act 2019. It also includes the proposed budget changes although these have not yet been promulgated at the time of printing.

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