9. Other Important Aspects of Business Travel Compensation
The travel compensation legislation uses the term “motor vehicle”, interpreted by SARS as follows: “A ‘motor vehicle’ is a road vehicle powered by a motor or engine, especially an internal-combustion engine. This would include a motorcycle.”
This interpretation includes a motorcycle (but not a boat …) and means that :
• A travel allowance can be granted in respect of a motorcycle,
• Travel reimbursements can be paid in respect of a motorcycle, and
• A motorcycle can be a company ‘motor vehicle’
Then take note that while the overwhelming majority of travel compensation is paid in respect of business travel that takes place in either a privately owned or a company-owned motor vehicle, this is not always the case.
Public transport vehicles (buses, taxis, trains etc.) make up a third category of motor vehicle that is neither owned by the employee nor by the employer. Travel compensation paid to employees who use public transport for business travel is dealt with under the chapter for travel allowances.

Section 7B Variable Remuneration
Income, including remuneration defined by the Fourth Schedule of the Income Tax Act, must be taxed on the earlier of the date of accrual (generally understood to be when there is ‘an unconditional entitlement to the money’), and the date of payment.
Due to significant administration problems experienced by employers and payrolls for many years, particularly between the months of February and March, and after many requests from the PAGSA over the years prior to 2013, section 7B of the Income Tax Act was added to the Income Tax Act and introduced the concept of ‘variable remuneration’ from 1 March 2013 as the solution.
All the remuneration types that are classified as ‘variable remuneration’ must now be taxed in the month in which they are paid, not the month in which they normally would have accrued.
Variable Remuneration Types:
1. Overtime
2. Bonuses (annual, quarterly, performance, etc.)
3. Commission (commission is calculated based on a percentage, not on number of units produced)
4. Travel allowances (an allowance or advance paid in respect of business travel expenses)
5. Leave paid out (BCEA annual leave that is owing and paid on termination)
6. Reimbursive travel allowances (payment of kilometer-based business travel expenses)
7. Night shift allowances
8. Standby allowances
9. Employer-paid reimbursements (these must be ‘true’ reimbursements as specified in the IT Act) , and