Deductions10 min read

What Can I Claim Against Tax in South Africa? (2025 Guide)

A comprehensive overview of every deduction and credit available to individual South African taxpayers — sorted by category with SARS section references.

Published 15 March 2025

The General Deduction Formula — Section 11(a)

The starting point for most deductions: expenditure actually incurred in the production of income, not of a capital nature. This covers most business-related expenses for people who earn trade income. Salaried employees who don't carry on a trade generally cannot claim Section 11(a) deductions — the exception is commission earners who earn more than 50% of their remuneration in commission.

Home Office — Section 23(b)

If you have a dedicated room used regularly and exclusively for work, you can deduct a proportion of rent/bond interest, rates, electricity, internet, and insurance. The proportion is calculated as office floor area ÷ total home floor area. Commission earners (>50%) and self-employed individuals qualify. Salaried employees only qualify if their employer requires them to work from home and doesn't provide an office. SARS Interpretation Note 28 provides detailed guidance.

Travel Allowance — Section 8(1)(b)

If you receive a travel allowance from your employer or use your own vehicle for business, you can claim: (a) Actual cost method — keep a logbook, claim business % of actual vehicle costs (fuel, insurance, maintenance, depreciation limited to R245,056 cost). (b) Deemed cost method — SARS prescribed rate per km (no logbook needed, but usually a smaller deduction). SARS publishes fixed cost tables annually.

Medical Tax Credits — Section 6A and 6B

Section 6A: Fixed monthly credit per member — R364/month for main member + first dependant, R246/month for additional dependants (2025 rates). Section 6B: Additional credit for high out-of-pocket medical expenses — 25% of (qualifying expenses minus 7.5% of taxable income) for under-65s. Over-65s and people with disabilities get a more generous formula. These are credits (reduce tax payable), not deductions (reduce taxable income).

Retirement Contributions — Section 11(k)

Contributions to pension funds, provident funds, and retirement annuities are deductible up to the lesser of: 27.5% of the greater of remuneration or taxable income, or R350,000 per year. Excess contributions carry forward to the next year. This is the single most powerful deduction for high-income earners and self-employed individuals.

Donations — Section 18A

Donations to approved Section 18A organisations (public benefit organisations) are deductible up to 10% of taxable income. You must have a Section 18A receipt from the organisation with their PBO reference number. Cash, property, and listed shares qualify. Donations to political parties, foreign organisations, or individuals are NOT deductible.

Wear and Tear — Section 11(e)

Capital assets used for trade can be depreciated over their useful life. SARS Interpretation Note 47 sets the rates: computers (3 years / 33.3%), office furniture (6 years / 16.7%), vehicles (5 years / 20%), tools (5 years / 20%). The asset must be owned by you and used for producing income. Second-hand assets are depreciated at the same rate based on your purchase price.

Other Commonly Missed Deductions

Professional body fees (Section 11(a)): SAICA, HPCSA, ECSA, Law Society, etc. Bad debts (Section 11(i)): debts owed to you that become uncollectible. Legal expenses (Section 11(c)): costs in connection with income-producing activities. Study costs: only deductible if directly connected to current employment and required by employer. Entertainment: generally not deductible in South Africa.

Disclaimer: This article is based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2024/2025 tax year. It is provided for informational purposes only and does not constitute professional tax advice. Tax legislation changes periodically — consult a registered tax practitioner for advice on your specific situation.

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