Technology

Tax Deductions for
Software Developers

A reference guide to SARS-allowable deductions commonly claimed by software developers, programmers, and IT professionals in South Africa, with legislative references and practical guidance.

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Common Tax Deductions for Software Developers in South Africa

The following deductions are commonly available to software developers, programmers, and IT professionals 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 expenses — internet, electricity, dedicated workspace (must be used exclusively for work)Section 23(b)
Computer equipment and peripherals — laptops, monitors, keyboards (depreciation over 3 years)Section 11(e), IN 47
Software licenses and subscriptions — IDE, cloud services, hostingSection 11(a)
Online courses and certifications — Udemy, Coursera, AWS/Azure certs (if directly related to current employment)Section 11(a)
Professional body fees — e.g. IITPSA membershipSection 11(a)
Co-working space fees (if no employer-provided office)Section 11(a)

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 Software Developers

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 software developers, programmers, and IT professionals.

OFO Occupation Code (ITR12)

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

  • 2512Software Developer
  • 2514Applications Programmer
  • 2511Systems Analyst

IRP5 / IT3(a) Source Codes

Common income source codes on your tax certificate:

  • 3601Salary / Wages
  • 3616Independent Contractor
  • 3606Overtime

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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