Category: Update Blast | Daily Meal and Incidental Costs Fuel Cost Vehicle Rate nternational Travel Allowances Allowance
The South African Revenue Service (SARS) has issued new tax updates effective from 1 March 2025. These changes impact daily allowances for travel, vehicle cost deductions, and fixed per-kilometre rates for motor vehicle use. Taxpayers must review these updates to ensure compliance and proper tax planning.
UPDATED TRAVEL ALLOWANCES
Daily Meal and Incidental Costs: The new allowance is set at R176 per day for incidental expenses and R570 per day for meals and incidental expenses combined.
- International Travel Allowances: For travel outside South Africa, daily allowances are determined based on Government Gazette No. 50243 dated 1 March 2024.
VEHICLE ALLOWANCE AND REIMBURSEMENT RATES
SARS has updated the fixed cost, fuel, and maintenance cost calculations for vehicle travel reimbursements:
| Vehicle Value Range | Fixed Cost (R) | Fuel Cost (c/km) | Maintenance Cost (c/km) |
|---|---|---|---|
| Up to R100,000 | 33,940 | 146.70 | 47.70 |
| R100,000 – R200,000 | 60,688 | 163.80 | 59.60 |
| R200,000 – R300,000 | 87,497 | 177.90 | 65.40 |
| R300,000 – R400,000 | 111,273 | 191.40 | 71.40 |
| R400,000 – R500,000 | 135,048 | 204.80 | 83.90 |
| R500,000 – R600,000 | 159,934 | 234.90 | 98.50 |
| R600,000 – R700,000 | 184,867 | 238.90 | 110.50 |
| R700,000 – R800,000 | 211,121 | 242.90 | 122.50 |
| Over R800,000 | 211,121 | 242.90 | 122.50 |
Fixed Reimbursement Rate: If no additional reimbursements (except for parking or tolls) are received, taxpayers may opt for a 476c/km reimbursement rate.
COMPLIANCE AND IMPLEMENTATION
These amendments apply to all taxpayers and businesses from 1 March 2025. It is advisable to consult a tax professional to assess how these updates affect personal and business finances.
DISCLAIMER
Nothing in this article and/or post should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure accuracy, Tax A Sured (Pty) Ltd does not accept any responsibility for consequences of decisions taken based on this article and/or post. It remains your own responsibility to consult the relevant primary resources when taking a decision.
