Which Business Expenses Are Tax Deductible in South Africa?
Comprehensive list of deductible business expenses for South African professionals, freelancers, and small business owners.
What makes a business expense tax deductible in South Africa?
In South Africa, business expenses that are "wholly and exclusively" incurred for business purposes are generally deductible. If a cost helped you earn income and you can prove it with a record, it usually qualifies.
Which business expenses can you claim?
Travel & Transport
- Fuel for business travel
- Vehicle maintenance (business portion)
- Toll fees
- Parking
- Public transport for business
Office & Equipment
- Stationery
- Computer equipment
- Software subscriptions
- Office furniture
Professional Services
- Accounting fees
- Legal fees
- Consulting fees
- Bank charges
Communication
- Internet (business portion)
- Phone (business portion)
- Postage
At a glance: what can you deduct?
| Expense type | Deductible? | Notes |
|---|---|---|
| Fuel for business travel | Yes | Keep a SARS logbook with odometer readings |
| Stationery and software | Yes | Must be for business use |
| Home office | Partial | Based on the floor area used for work |
| Phone and internet | Partial | Business-use portion only |
| Entertainment | Limited | Specific exceptions only |
| Fines and penalties | No | Never deductible |
| Equipment (capital) | No (depreciated) | Claimed as wear-and-tear over time |
Which expenses are only partially deductible?
Some expenses are only partially deductible: home office (based on area used), vehicle costs (based on business use), and phone or internet (based on business use). Work out the business percentage honestly and keep the basis you used.
Which expenses can't you claim?
These cannot be claimed: personal expenses, entertainment (with some exceptions), fines and penalties, and capital purchases (these are depreciated as wear-and-tear instead).
What records does SARS expect for each expense?
For each expense, keep the original receipt or invoice, the date of purchase, a description of the item or service, and the business purpose. For travel, keep a logbook with the date, destination, purpose, and start and end odometer readings.
How do you maximise your deductions?
Capture expenses as they happen instead of reconstructing them at year end. Use Expenstry to scan receipts, log SARS-compliant mileage, categorise automatically, and generate tax-ready reports. If you want the backstory, read why Expenstry was built.
Frequently asked questions
Can I claim fuel and travel as a sole proprietor?
Yes. If you use your vehicle for business, you can claim the business portion of fuel and running costs. SARS expects a logbook with the date, destination, purpose, and start and end odometer readings for each business trip.
Do I need the original receipt, or is a photo enough?
A clear digital copy is accepted as long as it shows the vendor, date, amount, and VAT. Capturing receipts as you go, rather than hoarding paper, is the reliable way to keep them.
Is entertainment tax deductible in South Africa?
Entertainment is generally not deductible, with limited exceptions. Treat it as non-deductible unless your tax practitioner confirms that a specific case applies to you.
How long must I keep my receipts for SARS?
Keep supporting documents for at least five years from the date you submit the return. Digital copies stored securely are accepted.