As a Sole Proprietor (or Freelancer) you are your business, you are responsible for declaring your income and expenses at the end of every tax year.
Claiming tax-deductible expenses can reduce your tax liability and ultimately boost your bottom line. But what exactly qualifies as a deductible expense?
In South Africa, SARS allows freelancers and sole proprietors to claim business expenses that are directly related to the production of income.

Here are common tax deductible expenses and tips on how to take advantage of them to maximise your tax savings.
Common Tax-Deductible Expenses
1. Office Rental
Renting an office space? The cost is deductible, provided you keep your monthly invoices as supporting documents.
2. Supplies and Equipment
From office supplies to essential equipment like computers or tools, these items are deductible if used for business purposes.
3. Travel Expenses
Business-related travel expenses, including airfare, accommodation, and car rentals, can be deducted—remember, personal travel costs aren’t eligible.
4. Client Entertainment
Meeting a client for coffee or lunch? These expenses are deductible, so keep those receipts!
5. Salaries and Wages
Employee compensation, including wages, bonuses, and other benefits, is fully deductible.
6. Software Subscriptions
Any software essential to your business—Adobe Creative Suite, Office, Xero, or industry-specific tools—can be written off.
7. Marketing and Advertising
Expenses for promoting your business, whether online ads, printed materials, or event costs, are deductible.
8. Professional Fees
Fees paid to accountants, legal consultants, or other professionals required for your business operations can also be claimed.
9. Bank Charges
Keep track of all service fees from your business bank account—these charges are tax-deductible.
10. Repairs and Maintenance
Repairs that aren’t capital improvements (such as basic maintenance on office property) qualify as deductible.
Special Considerations for Home Offices
If you work from home, you can deduct a portion of your rent or mortgage interest, utilities, and other household expenses. Calculate the deduction based on the percentage of your home’s floor space used for business purposes.
Capital Expenses and Depreciation
For larger purchases like computers, equipment, or office furniture, you can’t deduct the full cost immediately. Instead, claim depreciation over time, generally over 3-5 years, depending on the asset.
Record-Keeping Tips
Keeping accurate records is essential. SARS requires evidence for all expenses, so save receipts, invoices, and bank statements.
If you don’t use accounting software like Xero or Sage, set up a simple spreadsheet and update it monthly to track income and expenses.
By following these guidelines, you can maximise your deductions and avoid potential issues during tax season. If in doubt, consult a tax professional to ensure full compliance and leverage every deduction available to you!
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