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.