Understanding Individual Tax Deductions in South Africa: What You Can Legally Claim

Humairaa Moola
Jul 14
4 min read

Tax season often feels overwhelming—especially when you're unsure of what deductions you’re entitled to. But here’s the good news: South African tax law allows individual taxpayers to claim a range of deductions that can significantly reduce your taxable income and, in turn, your tax liability.

At HM Accounting, we’re all about helping you make sense of the numbers—and that includes knowing what you can claim to legally optimize your tax return. Whether you're a salaried employee, commission earner, freelancer, or side-hustler, this blog post breaks down the most common individual tax deductions in South Africa with tips on how to claim each one.

1. Medical Aid Contributions & Expenses

What can be claimed:

Tax credits for medical aid contributions.
Out-of-pocket medical expenses not covered by your scheme.

How it works: All taxpayers receive a Medical Tax Credit (MTC) for themselves and their dependents:

R364 per month for the first two members (yourself and one dependent),
R246 per month for each additional dependent.

These credits automatically reduce your tax payable; unused credits cannot be carried forward. To ensure you receive the full rebate, confirm all dependants are correctly listed on your medical scheme certificate.

If your medical expenses are significant and exceed a certain threshold relative to your income, you may also qualify for additional tax relief on qualifying out-of-pocket medical costs. This includes costs for chronic medication, disability-related expenses, and specialist treatments.

2. Retirement Annuities, Pension & Provident Fund Contributions

Why it matters: Saving for your future doesn’t just secure your retirement—it also lowers your tax bill.

Deduction allowed: Contributions to approved funds (pension, provident*, or retirement annuity) qualify for a deduction, subject to the greater of:

27.5% of the higher of
- taxable income before this deduction (excluding capital gains and lump sums), or
- remuneration before this deduction (excluding lump sums),

and

an absolute cap of R 350 000 per year of assessment.

Contributions in excess of the allowable limit roll over to the next year. Keep your fund’s annual statement and proof of payment handy when filing.*Note: From 1 March 2016, provident fund contributions are treated like pension/retirement annuities for deduction purposes.

So, whether you're employed or self-employed, contributing towards retirement is one of the most tax-efficient ways to grow your wealth.

3. Travel Allowance & Travel Claims

Who this applies to: If you receive a travel allowance from your employer or use your private vehicle for business purposes, you may be eligible to claim travel deductions.

What to keep in mind:

You must maintain a logbook that records your opening/closing odometer readings and all business travel.
Only business travel is deductible, not personal use.
SARS allows you to use either Reimbursive allowances (where you’re paid per kilometre): SARS’s prescribed rate is R 4.76/km (1 March 2025 onward).
Or Logbook method: Keep a detailed logbook showing opening/closing odometer readings, business vs. total kilometres, and vehicle details.

Only actual business kilometres may be claimed, and you must retain fuel, maintenance, insurance, and licence invoices.

If you're a commission earner (more on that below), these travel claims can be submitted as part of your business-related expense deductions.

4. Commission Earners – Section 11(a) Deductions

If more than 50% of your income is commission-based, you’re treated like a small business.

Claim actual travel expenses (depreciation, interest, maintenance, fuel, licence, insurance) with a compliant logbook.
You may also claim a broad range of business expenses (phone/internet, entertainment for clients, accounting/legal fees).
Cellphone/internet: apportion business vs. personal use, backed by itemised
bills.
Entertainment: for marketing/sales—keep detailed schedules linking names, purposes, and amounts.

Home office and entertainment claims have more relaxed exclusivity rules for commission earners: the space merely needs to be used over 50% for work.

Be sure to keep proof of expenses and apportion private vs business use, where relevant.

5. Home Office Expenses (Salary Earners)

With remote work more common than ever, many taxpayers are now eligible to claim home office deductions. But SARS has strict rules here.

To qualify:

The space must be a dedicated room, used exclusively and regularly for work.
You must perform more than 50% of your duties from this space (and over 50% of your income must be commission-based if you're not a sole proprietor or freelancer).
Not provided by your employer
Eligible expenses include a portion of rent, rates, electricity, cleaning, and repairs specific to the office.
Keep a floor-plan diagram and expense breakdown. Given the stringent requirements, review SARS’s home office guide or consult your tax practitioner before claiming.

These must be pro-rated based on the office size relative to the total home.

6. Donations to Registered Public Benefit Organisations (PBOs)

Feeling charitable? SARS rewards generosity—provided you donate to a Section 18A-approved organisation.

Deduction allowed: Up to 10% of your taxable income can be deducted if you have a Section 18A certificate for your donation.

Examples include schools, charities, and approved NGOs. Maintain official Section 18A receipts, and ensure the recipient appears on SARS’s PBO register. Any excess donations can’t be carried forward.

Bonus Tip: Keep Good Records!

Documentation is king: retain receipts, statements, logbooks, schematics, and SARS-compliant certificates for at least five years.

Accurate categorisation: enter each deduction in the correct section of the ITR12 to avoid delays or queries.

Seek advice: when in doubt—especially for complex claims like home office or commission-earner expenses—consult a registered tax professional

Final Thoughts

Claiming what’s rightfully yours doesn’t mean cutting corners—it means understanding the tax system and using the tools it provides. Whether you're a salaried professional, commission earner, or part-time consultant, these deductions can make a real difference to your bottom line.

At HM Accounting, we help clients across South Africa file accurate, compliant, and optimised tax returns. If you’re unsure about what you can claim—or want help planning smarter for the year ahead—reach out today.

Need help with your tax return? Whether you're filing for yourself or a business, we're here to help.

Contact us: