Benefits
Travel allowance
A cash allowance for business travel — 80% is subject to PAYE (20% if 80%+ of travel is business).
Full definition
A travel allowance (source code 3701) is paid to an employee who uses their private vehicle for business travel. 80% of the allowance is included in remuneration for PAYE purposes (or 20% if the employer is satisfied that at least 80% of the vehicle's use is for business). The employee reconciles actual business kilometres on their annual ITR12.
See also
Reimbursive travel
Per-km business travel reimbursement, tax-free at SARS's prescribed rate (R4.84/km in 2026/27).
Fringe benefit
Any non-cash benefit provided to an employee — taxed under the Seventh Schedule of the Income Tax Act.
SARS source codes
The 4-digit codes SARS uses on IRP5 certificates to classify each earning, deduction and contribution.
Automate Travel allowance in your payroll
Payroll Africa handles Travel allowance calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.
Browse the full South African payroll glossary — 55 terms explained.