What can you claim against your tax in South Africa?

In South Africa, taxpayers can claim various deductions, rebates, and allowances to reduce their taxable income and overall tax liability. Here's a comprehensive list of what you can claim:

For Individuals

1. Retirement Fund Contributions:
• Pension Fund Contributions: Contributions to a pension fund are deductible, subject to limits. For the 2024 tax year, the deduction is the lesser of R350,000 or 27.5% of taxable income.
• Provident Fund Contributions: Contributions to a provident fund also qualify for a tax deduction under similar limits.
• Retirement Annuity Contributions: Contributions to a retirement annuity (RA) are deductible, with a combined limit of R350,000 per year.
2. Medical Expenses:
• Medical Aid Contributions: Premiums paid to a registered medical scheme can be claimed. You can also claim a tax credit for medical aid contributions, which reduces your tax liability directly.
• Additional Medical Expenses: Out-of-pocket medical expenses not covered by medical aid can be claimed if they exceed a certain threshold.
3. Home Office Expenses:
• Deductible Costs: If you work from home, you can claim a portion of home-related expenses (e.g., rent, utilities, and office supplies) proportional to the size of your home office compared to the total home area.
4. Donations to Charity:
• Donations: Donations made to registered Public Benefit Organizations (PBOs) can be deducted up to a limit of 10% of your taxable income.
5. Interest on Student Loans:
• Loan Repayments: Interest on loans taken out for educational purposes may be deductible.
6. Travel Expenses:
• Business Travel: If you use your vehicle for business purposes, you can claim deductions for travel expenses such as fuel, maintenance, and wear and tear. This requires detailed record-keeping.
7. Home Loan Interest:
• Interest Deduction: Interest on home loans is not deductible for personal use, but if part of your home is used for business, you can claim a proportional amount of the interest.

For Businesses

1. Business Expenses:
• Operational Costs: Expenses incurred in running your business, such as rent, utilities, salaries, office supplies, and advertising, are deductible.
• Vehicle Expenses: If a vehicle is used for business purposes, you can claim deductions for fuel, maintenance, and depreciation.
2. Capital Allowances:
• Depreciation: You can claim depreciation on capital assets such as machinery, equipment, and vehicles. This is done through capital allowances based on the asset’s lifespan.
3. Bad Debts:
• Uncollectible Debts: If you write off debts that you cannot collect, you may be able to claim these as a deductible expense.
4. Stock Write-Downs:
• Inventory: Costs related to obsolete or unsellable inventory can be claimed as a deduction.
5. Interest on Business Loans:
• Loan Interest: Interest on loans taken out for business purposes is deductible.
6. Training and Development:
• Employee Training: Costs for employee training and development can be claimed as a business expense.
7. Rental Expenses:
• Business Property: Rent paid for business premises is deductible.

General Notes:

• Supporting Documentation: Keep detailed records and receipts of all expenses you claim to substantiate your deductions in case of a SARS audit.
• Limits and Thresholds: Some claims are subject to limits or thresholds. Always check the latest tax regulations or consult with a tax professional for the most accurate and up-to-date information.
• Tax Credits vs. Deductions: Tax credits (like medical aid credits) directly reduce your tax liability, while deductions reduce your taxable income, which in turn reduces your tax liability.

It's always a good idea to consult with a tax advisor or accountant to ensure you maximize your claims and remain compliant with tax laws.