Tax-deductible expenses for freelancers in South Africa

Quick answer

Freelancers can deduct expenses incurred in producing their income (section 11(a)), as long as they're not private or capital in nature and you keep proof for five years.

Commonly deductible

• Software subscriptions, hosting and domains
• Business share of cellphone and data
• Professional fees: accountant, bookkeeper, attorney
• Advertising and marketing
• Bank charges on the business account
• Stationery and printing
• Training directly related to your current work

Equipment (wear and tear)

Laptops, cameras and furniture are capital items: you claim them over their useful life (for example a laptop over 3 years) under section 11(e). Small items under R7 000 can generally be written off in full in the year bought.

Home office

Claim a share of rent or bond interest, rates, electricity and cleaning based on floor area, but only if the room is specifically equipped and used regularly and exclusively for your trade. Commission earners and salaried staff have stricter rules.

Travel

Keep a logbook of business kilometres. You can claim actual costs or use the SARS rate per kilometre for business travel; travel between home and a permanent workplace is private.

Not deductible

• Private expenses, groceries, clothing you can wear socially
• Fines and penalties
• Income tax itself
• Entertainment beyond strict business purpose