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News & Press: Technical & tax law questions

Declaring a subsistence allowance for foreign travel

17 November 2014   (0 Comments)
Posted by: Author: SAIT Technical
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Author: SAIT Technical

Q: What can I claim under code 3715 and 4019?  How do I calculate the claim?

A: The code 3715 is used where an allowance was paid for expenses in respect of meals and/or incidental costs for foreign travel, which exceeds the deemed amounts.  The amount deemed to have actually expended (or as you say that can be claimed)—

(i) where that recipient proves to SARS the amount of the expenses incurred by him or her in respect of accommodation, meals or other incidental costs (other than any amount of expenditure borne by the employer otherwise than by way of payment or granting of the allowance), is the amount actually incurred but limited to the amount of the allowance or advance paid or granted to meet those expenses; or 

(ii) for each day or part of a day in the period during which that recipient is absent from his or her usual place of residence, is the amount in respect of meals and other incidental costs, or incidental costs only, as SARS determined for a country or region for the relevant year of assessment by way of notice in the Gazette, but limited to the amount of the allowance paid or granted to meet those expenses: Provided that this subparagraph does not apply to the extent that—

(aa) the employer has borne the expenses (otherwise than by way of granting the allowance or advance) in respect of which the allowance was paid or granted for that day or part of that day; or

(bb) the recipient has proved to SARS any amount of actual expenditure in respect of meals or incidental costs for that day or part of that day, as contemplated in subparagraph (i).  

The Gazetted amounts were published (for the 2014 year) in Notice 148 (28 February 2013) and is normally used where the recipient didn’t keep record of the expenses or the actual expenses are less than the published amounts.  

We are not sure what the code 4019 is for.  It doesn’t appear in the SARS_PAYE_BRS - PAYE Employer Reconciliation (unless we missed it), but it unlikely that it is an income code.  

Disclaimer: Nothing in this query and answer should be construed as constituting tax advice or a tax opinion. An expert should be consulted for advice based on the facts and circumstances of each transaction/case. Even though great care has been taken to ensure the accuracy of the answer, SAIT do not accept any responsibility for consequences of decisions taken based on this query and answer. It remains your own responsibility to consult the relevant primary resources when taking a decision.


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