Tax season = vibes not immaculate. Between trying to grow your business, keep clients happy, and actually make money, it’s easy to forget about the small things that could be saving you big bucks on your tax return.
The truth is? You might be giving SARS more than you owe. Here are 10 tax deduction themes that too many South African entrepreneurs forget to claim:
1. Your Home Office
Working from your dining table, spare room, or even a converted garage? If it’s your main workspace, a portion of your rent, electricity, water, Wi-Fi, and cleaning can be claimed. Just make sure it’s mostly used for work. Here are the rules to know:
- It must be a dedicated space used regularly and exclusively for work
- You must spend more than 50% of your working hours there
- If you’re formally employed, you need a letter from your employer allowing you to work from home
Bonus tip: You’ll need to apportion your expenses based on the square metreage of your office vs. the entire home.
2. Cellphone and Data
If your phone or WhatsApp is also your mini-office (and let’s be honest, it is), claim part of your airtime and data, as long as it’s for business use.
Think: customer calls, WhatsApp Business, Google Maps to find suppliers…
Keep your monthly cellphone bills as evidence and highlight your business-use portion.
3. Car Costs
Driving to meetings, suppliers, or markets? You can claim a portion of your fuel, insurance, license fees, and even wear and tear.
BUT, only if you keep a valid logbook.
SARS is strict on this one. Your logbook must include:
- Opening and closing odometer readings for the tax year
- Date, distance, and purpose of each business trip
- Total km driven for business vs. personal
Even if your car is financed, the interest portion of repayments might be deductible if the car is used for business.
4. Marketing and Ads
Running Insta ads? Printing flyers? Updating your logo? Promoting your business = deductible. Yes, even your Canva Pro subscription falls into this bucket. CapCut too for all your reel makers.
Just make sure you keep those invoices — SARS will want to see proof if you’re audited.
5. Professional Services
Got help from an accountant, freelancer, tax practitioner, or coach? That counts. Keep those invoices!
6. Bank Fees
Monthly account fees, swipe charges, EFT fees, iKhokha or Yoco charges? They add up, and they’re tax-deductible. Yup, we said it. All tax-deductible. Just make sure they’re linked to your business activity.
7. Training and Upskilling
Did you take a course to learn new skills for your business? Online workshops? That counts. Just keep your receipts, course info, and proof of payments (POPs) handy.
8. Office Supplies and Gear
Printer ink, stationery, hard drives, ring lights, a new laptop - if it helps you run your biz, claim it.
Larger assets (like laptops) may need to be claimed over time via capital allowances (wear & tear) - typically over 3 years for electronics.
Just remember to snap a picture of the slip and upload it to your business expense in stub.
9. Software Subscriptions
Paying for business tools like Notion, Google Suite, or stub (wink wink)? They count. Even cloud storage and antivirus software. Once again, keep those receipts.
10. Bad Debts
If a customer never paid you after you included the income in your tax, you may be able to write it off as a bad debt. Painful, but deductible.
Here’s what SARS looks for:
- The debt must have been included in taxable income previously
- You must prove it’s irrecoverable (e.g., repeated follow-ups, legal demand, client closure)
- You’ll need supporting documentation
This is especially relevant for entrepreneurs using the accrual method (not cash-based accounting).
Don’t Give SARS a Tip
Every forgotten deduction means more tax. Don’t leave money on the table when you could keep it in your business where it belongs.
Feeling unsure? You’re not the only one. Most entrepreneurs are still figuring this stuff out, you're seriously not alone. If you have questions, feel free to reach out, and our stub accounting guru will have your back.