The rate per kilometer for the 2024 tax year was R4.64 per kilometer. The 2024 Tax Year started on the 1st of March 2023 and ended on the 29th of February 2024.
The rate per kilometer for the 2025 tax year was R4.84 per kilometer. The 2025 Tax Year started on the 1st of March 2024 and ended on the 28th of February 2025.
In South Africa a tax year starts on the 1st of March and ends on the last day of Ferbuary in the next year. The Tax year in question will always be the year attached to that February.
The following is news flash 2024/11 published by the PAGSA on February 27, 2024 regarding Budget 2024L Highlights and useful links
BUDGET 2024: HIGHLIGHTS AND USEFUL LINKS FOR PAYROLLS
The Minister of Finance presented the 2024 Budget Review in Parliament on 21 February 2024.
The following information is applicable to the 2025 Tax Year
The following documents and information are now available on the SARS website:
• 2025 Tax tables: https://www.sars.gov.za/tax-rates/income-tax/rates-of-tax-for-individuals/ (no changes from previous year)
• Medical fees tax credit: https://www.sars.gov.za/tax-rates/medical-tax-credit-rates/ (no changes from previous year)
• Budget Tax Guide: https://www.sars.gov.za/wp-content/uploads/Budget-tax-guide-2024-_.pdf
• Budget documents: https://www.treasury.gov.za/documents/national%20budget/2024/default.aspx
Statutory Rates of Tax: 2025 Year of Assessment (1 March 2024 — 28 February 2025)
The following tax rates, tax rebates and tax thresholds proposed by the Minister of Finance in his Budget speech come into effect on 1 March 2024. (No changes from previous year).
Statutory rates applicable to individuals
Taxable Income (R) Rates of Tax (R)
0 — 237 100 18% of each R1
237 101 — 370 500 42 678 + 26% of the amount above 237 100
370 501 — 512 800 77 362 + 31% of the amount above 370 500
512 801 — 673 000 121 475 + 36% of the amount above 512 800
673 001 — 857 900 179 147 + 39% of the amount above 673 000
857 901 — 1 817 000 251 258 + 41% of the amount above 857 900
1 817 001 and above 644 489 + 45% of the amount above 1 817 000
Tax rebates applicable to individuals
• Primary rebate R17 235
• Secondary rebate (for persons 65 years and older) R9 444
• Tertiary rebate (for person 75 years and older) R3 145
Tax thresholds applicable to individuals
• Persons under 65 years R 95 750
• Persons 65 to 74 years old R148 217
• Persons 75 years and older R165 689
Medical Scheme Contribution Tax Credit
The medical scheme tax credits that will be effective from 1 March 2024 are:
• R364 in respect of the taxpayer
• R364 for the first dependent
• R246 for each additional dependent
Rate per Kilometer
The “Cost scale Table” for 2024/25 can be access via the following link:
https://www.sars.gov.za/legal-lsec-it-gn-2024-003-budget-2024-rates-per-kilometre-vehicle-1-march-2024/
The prescribed rate per kilometer has been increased from R4,64 per km to R4,84 per km for the 2025 Tax year. In the 2024 tax year the rate per kilometer was R4.64 per kilometer. This rate is applicable at the option of the recipient where no other form of compensation is received for business travel purposes.
Subsistence Allowances and Advances
The daily amounts for overnight allowance in respect of travelling for business purposes (including at least one night away from home) in the Republic are:
• R548 per day for meals and incidental costs
• R169 for each day for incidental costs only
https://www.sars.gov.za/legal-lsec-it-gn-2024-002-budget-2024-notice-subsistence-allowance-rates-overnightallowance-1-march-2024/
The daily amount for daily business trip reimbursements (not away from home for a night) is:
• R169.
https://www.sars.gov.za/legal-lsec-it-gn-2024-001-budget-2024-notice-subsistence-allowance-rates-dayallowance-1-march-2024/
Regards,
Rhona van Taak
The following is the News flash 2022-13 published by the PAGSA regarding Rate per Kilometre 2023 Tax year
Rate per kilometer (March 2022 – February 2023 also the 2023 Tax year)
SARS has published the “Rate per kilometer” in respect of Motor vehicles for the purposes of Section 8(1)(b(ii) and (iii) of the Income Tax Act.
R4.18 per kilometer may be used in terms of the prescribed Simplified method in cases where no other compensation in the form of a further allowance or eimbursement (excluding parking and toll fees) is paid to the employee for the 2023 Tax Year.
The rate per kilometer for the 2022 Tax year was set at R3.82 per kilometer.
Please note that this publication has not been Gazetted yet and the following link can be used to access the publication:
https://www.sars.gov.za/wp-content/uploads/Legal/SecLegis/LAPD-LSec-IT-GN-2022-003-Vehicle-cost-tables-2022.pdf
SUBSISTENCE ALLOWANCES AND ADVANCES: 2026 TAX YEAR
Thanks to SARS who, after a request by the PAGSA, today published the daily deemed expense thresholds in respect of meals and incidental costs for the purposes of section 8(1).
The daily deemed expense thresholds in respect of travelling for business purposes (for at least one night spent away from home) in the Republic effective 1 March 2025 are:
• R570 per day for meals and incidental costs
• R176 for each day for incidental costs only
https://www.sars.gov.za/legal-lsec-it-gn-2025-002-budget-2025-notice-subsistence-allowance-rates-overnightallowance-28-february-2025/
The daily deemed expense threshold for business trip reimbursements (when a night is not spent away from home) for meals and incidental expenses effective 1 March 2025 is :
• R176.
https://www.sars.gov.za/legal-lsec-it-gn-2025-001-budget-2025-notice-subsistence-allowance-rates-day-allowance28-february-2025/
RATE PER KILOMETER: 2026 TAX YEAR
Thanks to SARS who, after a request by the PAGSA, today published the prescribed rate per-kilometer and the SARS Cost Scale table under sections 8(1)(b)(ii) and (iii), effective 1 March 2025.
The prescribed rate per kilometer effective 1 March 2025 has been reduced from R4,84 per km to R4,76 per km. This rate is applicable at the option of the recipient where no other form of compensation is received for business travel purposes.
The “Cost scale Table” has been changed for 2025/26 (effective 1 March 2025) and can be access via the following link: https://www.sars.gov.za/legal-lsec-it-gn-2025-003-budget-2025-rates-per-kilometre-28-february-2025/
SOURCE CODE DESCRIPTIONS IRP5 code 3651
Normal Income Codes
In the electronic file IRP5 code 3651 is used for: Income (PAYE) specifically for foreign services income. An amount which is paid or payable to an employee for Services rendered, excluding any Long Service Cash Award, required to be declared under code 3622/3672.
Examples include:
· Salary/wages
· Backdated salary/wages/pension (Accrued in the current year of assessment)
· Remuneration paid to migrant/seasonal workers/full time scholars or students; etc.
The prescribed Length of IRP5 code 3651 in the electronic file is: N15
All income and deduction components (e.g. salary, commission, allowances, benefits, medical contributions, employer information, etc.) must be reported against the applicable code as prescribed in the GUIDE FOR CODES APPLICABLE TO EMPLOYEES’ TAX CERTIFICATES PAYE-AE-06-G4.
The abbreviations used within the description of the relevant codes mean:
• PAYE: Income is subject to the deduction of Employees’ Tax and will also be taxed when the income tax assessment for the employee is processed.
• IT: Income is not subject to the deduction of Employees’ Tax but will also be taxed when the income tax assessment for the employee is processed.
• Excl: Income is not subject to the deduction of Employees’ Tax and will also not be taxed when the Income Tax assessment for the employee is processed.
• Excl/PAYE: Depending on the circumstances described in the legislation, the income is either subject to both PAYE and Income Tax, or it is excluded from both PAYE and Income Tax
ETI refunds (by SARS)
It is important to keep track of the excess amounts by completing each EMP201 monthly return correctly in order to claim any access ETI amount not claimed by the employer during the EMP201 monthly process.
The EMP501 reconciliation return are used for purposes of claiming the excess ETI amount.
The excess amount will be deemed to be zero if any tax debt and/or tax return is outstanding at the end of the next EMP501 reconciliation period.
Roll-over amounts:
Section 9 of the Act deals with ETI available amounts which has been roll-over (excess ETI) either due to —
• ETI available amount exceeds the PAYE for the relevant month;
• employer not claiming the available ETI amount in the specific month
• employer is limited on claiming the ETI available amount due to the outstanding tax returns and/or debt.
At the starting of each reconciliation period (i.e. 1 September and 1 March), the excess amount is deemed to be zero in terms of section 9(4). The excess amount at the end of the reconciliation period will be dealt with by SARS as a refund to employers.
• At the end of each recon period (e.g. August and February), the ETI brought forward amount is deemed zero for the beginning of each recon period (e.g. September & March).
• This amount carried forward at the end of each recon period is claimed as a refund by completing the EMP501 reconciliation return.
