Looking to hire in South Africa

Approved business expenses reimbursed within the applicable limits are not taxed. If an expense is submitted without the required documentation, the reimbursement is treated as taxable income. Transaction details or card vouchers on their own are not accepted as valid documentation in South Africa; employees must provide proper invoices, receipts, or other specified documents.

Phone and internet subscriptions, as well as coworking fees, can be reimbursed when supported by a tax invoice or receipt showing the date, amount, and the service provider or merchant name. One-off setup or installation costs for phone and internet are treated differently from ongoing monthly fees for tax purposes.

Work-related equipment and supplies are reimbursable when backed by a tax invoice or receipt that shows the date, amount, and the service provider or merchant name. Crypto-related business expenses require more detailed proof, including transaction specifics and a clear business purpose.

Most business travel costs are reimbursed tax-free when supported by a tax invoice or receipt showing the date, amount, and the service provider or merchant name. For accommodation and flights, a booking confirmation with proof of payment and all obligatory details is also acceptable. Public transport and parking or toll fees can be supported by tickets in addition to receipts.

Everyday meals, groceries, and business meals with clients or partners can be reimbursed tax-free when supported by a tax invoice or receipt that shows the date, amount, and the service provider or merchant name.

Training, courses, books, promotional items, and business gifts to clients are reimbursed tax-free when supported by a tax invoice or receipt showing the date, amount, and the service provider or merchant name. Gifts to employees are treated differently and are generally taxable fringe benefits.

During business trips that include an overnight stay, employers may pay a subsistence allowance to cover incidental costs alone or both meals and incidental costs. Employees who receive a subsistence allowance for meals and incidentals cannot also claim separate meal reimbursements. The allowance is not taxable up to the limits set by the South African Revenue Service and should be claimed under the Per Diem expense type.

Bonuses in South Africa include contractual and discretionary payments such as incentives and commissions. They are taxed as regular income, including any applicable social security contributions. Under the Pay-As-You-Earn system, withholding in periods when bonuses are paid may be higher than in regular months.