For the 2024 tax year, SARS allows R548 for local meals & subsistence allowance. For international rates, see rates page.

The full meals & subsistence allowance received by an employee is included under the employees income received and the taxable portion is included under taxable income. The non taxable portion is included under non taxable income.

An additional R169 is allowed for incidental costs.

A Cellphone cash allowance is 100% taxable less, proven business use.

A number of complications arise, for example, if the cellphone is used mainly for business, then there is no tax payable for this benefit. “Mainly” means more than 50% but this is pretty subjective, because it would include incoming as well as outgoing calls, Whats-app, email, Internet searches etc.

If the above is not the case then there is a formula for calculating the taxable portion, you use your own device/service partly for company business. Your employer reimburse you for its share of the costs.

The reimbursement is not taxable income but the cellphone allowance is.

A laptop cash allowance is also 100 Percent taxable but up to the extent of personal. A formula can be applied to determine what percentage of laptop is being used for business & personal use.

SARS is willing to accept any reasonable formulae that apportions business to private use in order to determine the tax or non taxable allowance of a laptop.

When it comes to a re-allocation allowance, SARS allows up to a maximum of one months of an employee’s salary equivalent. In addition, allowable reallocation allowances must be backed up by supporting documents and must be direct in nature and not incidental.

An employer may provide an employee a cash allowance to buy a uniform. Such cash allowance shall not form part of a taxable allowance provided that such uniform is worn for the purposes of work and that it can be clearly distinguished from ordinary clothing.