South Africa
Vehicle Reimbursement for Business Travel
South Africa’s prescribed SARS reimbursement rate is R4.95 per business kilometre for 1 March 2026 to 28 February 2027, the 2027 year of assessment. Reimbursement based on actual business kilometres can be tax-free at or below this rate if you receive no other vehicle travel compensation, apart from parking or toll fees. The rate is a tax rule, not an automatic entitlement to payment from your employer.
SARS reimbursement rates per kilometre
| Tax year | Period | Prescribed rate |
|---|---|---|
| 2026/2027 | 1 March 2026–28 February 2027 | R4.95/km |
| 2025/2026 | 1 March 2025–28 February 2026 | R4.76/km |
| 2024/2025 | 1 March 2024–28 February 2025 | R4.84/km |
| 2023/2024 | 1 March 2023–29 February 2024 | R4.64/km |
There is no annual 8,000 km limit under the current reimbursive travel rules. The business-kilometre limit was removed from the 2019 year of assessment, which began on 1 March 2018. Your employer can still set its own approval procedures and reimbursement limits.
Use the rate for the applicable tax year. A calendar-year reference such as “2026 mileage rate” covers parts of two South African tax years, so check the dates when preparing a claim.
Reimbursement and a fixed travel allowance are different
A reimbursive travel allowance pays for actual business distance. A fixed travel allowance is a set amount, for example each month, and does not automatically receive the same tax-free treatment.
For a fixed travel allowance, PAYE normally applies to 80% of the allowance. This falls to 20% where the employer is satisfied that at least 80% of the vehicle’s use for the tax year will be business use. These percentages determine the amount subject to withholding; they are not income-tax rates or a final tax calculation.
If reimbursement exceeds the prescribed rate, the excess per kilometre is subject to PAYE. If you also receive a travel allowance, SARS combines the relevant amounts on assessment, against which an allowable business-travel deduction may be claimed. Check the arrangement with payroll before treating a payment as tax-free.
Example: 300 business kilometres
If your employer reimburses 300 km at R4.95/km, the payment is R1,485. It can qualify for the simplified tax-free treatment when the conditions above are met.
If the agreed rate is R5.50/km, the payment is R1,650. The difference above the prescribed rate is 300 × R0.55 = R165, which is subject to PAYE. Keep the distance and agreed rate with your claim so payroll can apply the correct treatment.
What to record in a SARS travel logbook
Record the date, business kilometres, starting point, destination and business reason for each business trip. Keep enough detail to explain the journey, such as the client or site visited. For a travel deduction, also record the vehicle’s odometer reading at the beginning and end of the tax year and keep a separate logbook for each vehicle.
Travel between home and your normal workplace counts as private travel. Separate it from business visits and other qualifying journeys. A total monthly distance without the supporting trip details is insufficient for a travel deduction.
SARS accepts electronic logbooks. Retain your logbook for at least five years. If you claim actual vehicle costs, keep the supporting expense records as well. A deduction against a travel allowance may use actual costs or the separate SARS vehicle-cost table; the flat reimbursement rate is not a universal deduction for every kilometre you drive.
Track business mileage with Motolog
Motolog helps you record trips automatically and organise your business mileage. Use automatic official rates where supported, or set a custom rate for your employer’s arrangement. Review the trip purpose and classification before preparing your reimbursement records, and retain any additional documents your claim requires.