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Tax-Deductible Expenses for Freelancers and Sole Proprietors in South Africa

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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Contare is a professional accountancy firm based in Cape Town, South Africa.

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We specialize in tax, business advisory and cloud accounting services.

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Registered Tax Practitioners, CA (SA) as well as a Network Member of Chartered Accountants Worldwide (CAW).

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Contare Chartered Accountants (Pty) Ltd

Registration (2016/477816/07)

SAICA ID: 20002777

Tax Practitioner No. PR-0028591

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Director: Treflet Payet CA (SA)

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Contact Us: info@contare.co.za

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