3 Employees that qualify for a Travel Allowance
An employer may not grant a travel allowance to an employee who does not travel for business purposes.
If the business travel activity is very low (eg. an admin clerk who must go to the employer’s bank once a week), as long as the employee qualifies, a travel allowance can be paid. But its value must be low because the business kilometers are low.
Further a travel allowance may only be granted by an employer if the employee uses a motor vehicle for the business travel that is not owned or rented by the employer. The car does not have to be owned by the employee – it can belong to a friend or a family member.
It is possible to grant a travel allowance to an employee who already has the use of a company car, but the law changes the nature of the payment from being a travel allowance, to normal remuneration (fully taxable, no deduction for business travel expenses allowed).