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What are the SARS subsistence-allowance rules for overnight employee travel?
What are the SARS subsistence-allowance rules for overnight employee travel?
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Direct answer
For the 2027 tax year, SARS sets domestic deemed daily amounts of R595 for meals and incidental costs, or R184 for incidental costs only, where an employee must spend at least one night away from the usual residence on business and the relevant accommodation is in South Africa. These are deemed-expenditure amounts. They are not a promise that every travel payment is automatically tax-free.
For foreign accommodation, SARS publishes country-specific daily amounts. Check the current country schedule rather than applying the domestic amounts overseas.
What this means in practice
The overnight condition comes first. The employee must be obliged by employment duties to spend at least one night away from the usual residence on business. A long day trip does not meet that condition merely because it involves meals or late travel.
Where the accommodation is in South Africa, SARS provides two daily amounts for the 2027 tax year, which runs from 1 March 2026 to 28 February 2027. The R595 amount is for meals and incidental costs. The R184 amount is for incidental costs only. Before using either figure, make sure the allowance or advance relates to the relevant type of expense and overnight accommodation.
Foreign travel is not a single-rate calculation. SARS publishes a country-by-country table for meals and incidental costs. The destination, currency and applicable current schedule should be recorded. A general foreign per diem used by the employer may not match the SARS figure.
Step-by-step
- Confirm the purpose and overnight facts.
Keep travel authorisation, itinerary and proof that the employee had to stay away from the usual residence for business. Record the dates and destination. Do not treat personal extensions as business travel without a clear basis.
- Identify the accommodation location.
Establish whether the accommodation is in South Africa or outside it. This decides whether the domestic 2027 amounts or the foreign country schedule is relevant.
- Identify the expense category.
For domestic overnight travel, distinguish meals and incidentals from incidental costs only. The applicable 2027 amount is R595 or R184 per day respectively. Do not use a prior tax year's amount.
- Check the foreign schedule where applicable.
For travel outside South Africa, use the SARS country amount from the current notice. Keep the country, currency and source table with the claim or allowance calculation.
- Send complete records to payroll.
Provide the travel facts, allowance amount, dates and supporting records for payroll review. The actual payroll treatment depends on the payment and facts, so do not assume that a label such as "per diem" settles it.
Documents and records to keep
- Business travel authorisation and itinerary.
- Dates, destination and evidence of overnight accommodation.
- Allowance policy and payroll working papers.
- Employee travel claim or travel record.
- Current foreign country schedule used, where relevant.
- Record showing whether payment was for meals and incidentals or incidentals only.
Important limits and exceptions
R595 and R184 apply only to the 2027 tax year, from 1 March 2026 to 28 February 2027. They relate to domestic overnight travel and have different expense categories. Do not use them for a part-day meal reimbursement or for a vehicle travel allowance.
Foreign subsistence is country specific. The employer must use the current official schedule for the country concerned. A blanket foreign rate, a hotel invoice or a company travel policy does not replace that check.
This article does not provide a universal PAYE result for any actual allowance or advance. Records, business purpose, accommodation location and the payment arrangement still need payroll review.
When to get tailored advice
Get tailored payroll advice for foreign travel, combined travel and subsistence payments, director travel, personal travel extensions, unusual accommodation arrangements or corrections to previous employee tax reporting.
TaxProof can help organise travel records and identify the current SARS rate source. It cannot decide payroll treatment for a complex travel arrangement or replace an employer's PAYE review.
Related TaxProof guides
- Travel allowance and company car tax in South Africa
- Can I reimburse an employee's day-trip meals without creating PAYE? (B02-BUS-008)