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Commentary

7.6.1 Subsistence allowance

South Africa

It should be noted that this employees' tax consideration is particularly complex and a clear understanding of the relationship between this section and the Fourth Schedule is imperative. Subject to certain exceptions, allowances or advances included in taxable income under s 8(1)(a)(i) are included in the 'remuneration' of the relevant employee, per para (bA) of the definition. However, this inclusion is subject to certain exceptions, which apply depending on the allowance paid.

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