When it comes to business travel, it can become tricky for reimbursement.
The right way for a business to manage this is for the employee to provide the kilometers travelled and the business will then calculate the kilometer to the Rand in order to reimburse.
The tricky bit comes in when you have to calculate tax. Usually, businesses follow the SARS rate and, in that case, there is no tax.
In addition, did you know that if an employee is using an employer petrol card they should be taxed in the same way and at the same rate as if they had a travel allowance?
The total reimbursed travel must also be reflected on the IRP5 certificate and the rate per kilometer is fixed by the Minister of Finance.
It is best to use a professional to help you pay out correctly and fairly.