Have you ever logged into your eFiling profile, excited to get a nice refund from SARS—only to discover that your travel claim can’t be submitted? Frustrating, right? Let’s unpack a real-world scenario and explain exactly why this happens, how SARS views travel reimbursements, and what you (or your payroll team) can do differently next year.

The scenario involves an employee frustrated as he couldn’t “claim or input any info for my travel claim portion of my tax return”. The response from SARS was that it was submitted under code 3703, which is non-claimable. He has confirmed with multiple people that he should be able to claim- so what’s going on?

If this sounds familiar, you’re not alone. Every year, many taxpayers run into the same issue.

What Code 3703 Actually Means

SARS uses specific codes on your IRP5 to categorize different types of income and allowances. When it comes to travel reimbursements, two codes are most common:

· 3702: For reimbursive travel above the SARS rate, or when a fixed allowance is involved.

· 3703: For travel reimbursements that meet both of these criteria:

1. No fixed travel allowance was paid.

2. The reimbursement rate is at or below SARS’s prescribed rate (currently R4.76/km for the 2025 tax year).

In the example above, the person was reimbursed at R2.85/km with no fixed allowance. That’s well below the R4.76 threshold, and SARS classifies this as non-taxable under code 3703. Sounds good, right? A non-taxable benefit? Yes… but there’s a catch.

Why You Can’t Claim Travel Deductions Under 3703

Here’s the key thing: If your reimbursement falls under code 3703, SARS considers it already fully accounted for—you don’t get to claim anything further.

Even if your employer only reimbursed you for a portion of your business travel, or even if you drove way more kilometres than were reimbursed, SARS sees code 3703 as the end of the road. No logbook submissions, no additional deductions. This is because SARS’s policy is to treat reimbursements under the prescribed rate (and without a fixed allowance) as fair, final, and fully resolved.

When You Can Claim Travel

If you want to be able to claim actual kilometres and submit your logbook to SARS, one of these conditions needs to be true:

1. You received a fixed travel allowance → This is reported under code 3701 or 3702, depending on how it’s structured.

2. You were reimbursed at a rate above the SARS threshold → Even with no fixed allowance, this triggers code 3702.

3. You opted for a different reimbursement model with your employer, combining a lower fixed allowance plus claimable excess.

In these cases, SARS allows you to submit a travel logbook and deduct actual business kilometres above the tax-free portion.

What Payroll Can Do Differently

If you’re an employee who drives for work regularly and wants to claim actual expenses (like fuel, wear and tear, etc.), your payroll team should structure your travel benefit differently. For example:

· Add a small fixed monthly allowance, even if it’s R500/month.

· Reimburse at a rate above SARS’s prescribed amount.

· Or split it: fixed allowance + partial reimbursement.

This will move your travel earnings into a claimable category (code 3702), allowing you to submit a logbook and potentially reduce your taxable income.

Getting a travel reimbursement under code 3703 is not wrong—it’s tax-efficient, since it’s non-taxable. But if your goal is to maximize your deductions by claiming actual business kilometres, your employer can structure your remuneration differently.

So next time you’re chatting with your payroll team, consider asking:

“Can we structure my travel benefit so I can claim business kilometres next tax season?”

Your future refund might just thank you.