Self-Employed

Tax Deductions for
Freelancers

A reference guide to SARS-allowable deductions commonly claimed by freelancers, independent contractors, and gig workers in South Africa, with legislative references and practical guidance.

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Common Tax Deductions for Freelancers in South Africa

The following deductions are commonly available to freelancers, independent contractors, and gig workers under the South African Income Tax Act. Eligibility depends on your specific circumstances, employment type, and whether expenses were incurred in the production of income.

Home office deduction — must be a dedicated room used regularly and exclusively for tradeSection 23(b)
Internet, phone, and data expenses (business-use portion only)Section 11(a)
Computer equipment and office furniture (depreciated over useful life)Section 11(e), IN 47
Retirement Annuity contributions — up to 27.5% of taxable income, max R350,000/yearSection 11(k)
Accounting fees and invoicing softwareSection 11(a)
Business insurance, bank charges, and professional subscriptionsSection 11(a)
Bad debts written off (clients who didn't pay)Section 11(i)

Important: This is general guidance based on the Income Tax Act and SARS Interpretation Notes. It is not professional tax advice. Deductibility depends on your individual circumstances. Consult a registered tax practitioner for complex situations. All SARS section references are based on current legislation and may be subject to change.

SARS eFiling Codes for Freelancers

When filing your ITR12 on SARS eFiling, you'll need to select an occupation code and your IRP5/IT3(a) will contain source codes for different income types. Here are the codes relevant to freelancers, independent contractors, and gig workers.

OFO Occupation Code (ITR12)

Select one of these when SARS eFiling asks for your occupation:

  • N/AVaries by trade — select your specific occupation on eFiling

IRP5 / IT3(a) Source Codes

Common income source codes on your tax certificate:

  • 3616Independent Contractor
  • 3619Labour Broker
  • 3605Commission

OFO codes are from the Organising Framework for Occupations used by SARS on the ITR12 return. IRP5 source codes appear on the tax certificate issued by your employer or contractor. Codes are based on the current SARS eFiling system and may be updated by SARS periodically.

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