Expense Reimbursement Policy in South Africa



Modified on: Fri, 3 Oct, 2025 at 3:10 PM

TABLE OF CONTENTS


This policy outlines the rules and documentation requirements for reimbursing business-related expenses incurred by employees working in or traveling to South Africa.


Invoice Requirements


To ensure tax compliance and eligibility for VAT reclaim:

  • Invoices must include:
    • Supplier name
    • Date
    • VAT number
    • Description of service
    • Amount
  • Invoices over R50: Must be valid SARS tax invoices.
  • Small cash items: If no receipt is available, a declaration form must be submitted.
  • Company Name: Large supplier invoices should list New Horizons Global Partners (Pty) Ltd.


Tax-Free Expenses

Expenses must be:

  • Actually incurred in the production of income
  • Properly documented
  • Examples: Travel, accommodation, business calls, client meals


Business Travel

  • Flights: Economy class for domestic/regional travel. Business class only with prior approval.
  • Accommodation: Mid-range (3–4 star) hotels unless client requirements dictate otherwise.
  • Meals: Internal caps apply per meal/day.


Per Diem Rates

SARS publishes daily subsistence allowance limits:

  • Local Travel:
    • R161/day (meals only)
    • R522/day (meals + incidentals)
  • International Travel:
    • Country-specific limits apply (see SARS tables)
    • Tax-free only if the employee sleeps away from home. Excess amounts are taxable.



Mileage Reimbursement

  • Rate: R4.64 per km (2025/26 SARS Reimbursive Travel Allowance)
  • Tax-Free Limit: Up to 8,000 km per year can be reimbursed tax-free.
  • Logbook Required:
    • Date of trip
    • Odometer readings (start and end)
    • Distance travelled
    • Business purpose and destination
  • Amounts above 8,000 km/year may be taxable unless reimbursed based on actual vehicle costs.


Parking, Tolls & Ride-Hailing

  • Parking/Toll Fees: Must be supported by receipts or e-tag statements.
  • Taxi/Ride-Hailing: Receipts or trip summaries accepted.
  • Note: Home-to-office commuting is not reimbursable.



Client Entertainment & Gifts

  • Must record:
    • Names of attendees
    • Company
    • Business purpose
  • Deductible for employer; not taxable to employee if reasonable.


Health & Wellness

  • Deductible: Only if required for business (e.g., mandatory medicals, vaccinations)
  • Not Deductible: Gym, yoga, or wellness programs are considered taxable fringe benefits if employer-paid.

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