Inland Revenue Division - Ministry Of Finance and The Economy



Services - Applications - Application For Dispensation


What is a Travelling Dispensation?


Where a director or employee is required to travel to perform his job, the company or employer may request permission from the Board of Inland Revenue to pay to such person, a Travelling Allowance free of Tax.


This dispensation is given at the Board’s discretion provided that it is satisfied that the director or employee incurs expenses of travelling wholly, exclusively and necessarily for the specific purposes of carrying out his/her duties. 



An application Letter from the Employer (on the company’s letterhead) to the Commissioner of Collections, Victoria Courts, Cor Queen and Edward Streets, Pos certifying that the employee is required to travel in the performance of his/her duties, and stating the Employee’s:

  • Name
  • BIR File number
  • Position
  • Vehicle number
  • Salary
  • Any other allowances received by the employee

 The original Certified Copy of Ownership and Car Insurance should be produced with a copy. The employee must be listed as an owner. In cases of joint ownership, the other named party must state in writing that he/she is not claiming any expenses with respect to the use of the said vehicle.


A mileage log giving details of date, destination and the amount of kilometers travelled in the performance of his/her duties for the most recent three (3) months. A designated company representative must certify this travel log.


Any allowances or payments made to employees should be charged to tax unless the Board of Inland Revenue has granted a traveling dispensation. The travelling dispensation becomes effective ONLY from the date of approval.



The dispensation would not be granted in an amount in excess of $1,500.00 per month.

Travelling Dispensation would not be granted in the following instances:

Where the vehicle is acquired under a Leasing arrangement

Where the vehicle bears registration other than “P”

Where the employee’s tax liabilities (already assessed) remain unpaid and no satisfactory arrangements have been made to clear the liability.



A new application for dispensation is required when:

  • The employee changes the vehicle.
  • The ownership of the vehicle changes.
  • The employee is no longer required to travel in the performance of his/her duties.
  • The employee changes job functions.




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