If you’re an individual taxpayer in South Africa, you might be eligible to claim back certain expenses from SARS (South African Revenue Service) to lower your taxable income ; and in many cases, even get a tax refund. These deductions and rebates can make a real difference to your final tax liability.
Below is a breakdown of what you can claim back from SARS and how to stay compliant when doing so.
1. Medical Expenses (Out-of-Pocket)
You can claim back qualifying medical expenses not covered by your medical aid, such as:
- Doctor consultations and hospital visits
- Prescription medication
- Assistive devices like wheelchairs or hearing aids
- Therapy or specialist treatments
SARS allows deductions based on the medical tax credit system, so keep detailed proof of all costs incurred.
2. Retirement Fund Contributions
Contributions made to a registered retirement fund—like a pension, provident, or retirement annuity fund—are tax-deductible up to:
- 27.5% of your taxable income or remuneration, whichever is higher (capped annually)
This is one of the most effective ways to reduce your taxable income.
3. Work-Related Travel Expenses
If your employer requires you to travel for work, you may be able to deduct costs like:
- Business mileage (using the SARS travel allowance table)
- Toll fees and parking
- Accommodation and meals (if overnight travel is required)
You’ll need a logbook and employer confirmation if you’re claiming vehicle-related deductions.
4. Donations to Registered Charities
SARS encourages giving by allowing tax deductions for donations to approved Public Benefit Organisations (PBOs).
- You can claim up to 10% of your taxable income for donations, provided the organisation gives you a Section 18A receipt.
5. Home Office Expenses
If you work from home and have a dedicated space used exclusively for business:
- You may claim a portion of your rent, electricity, internet, and repairs
- Only applies if your home office is a requirement of your job and not just by choice
This deduction is stricter for employees than for freelancers/self-employed.
6. Educational Expenses (Limited Cases)
While general school fees or university tuition are not deductible, you might claim:
- Courses or training directly related to your current job
- Certifications required to maintain professional status
7. Tax Rebates & Age-Based Thresholds
SARS offers automatic tax rebates based on age and income:
- Primary Rebate: Applies to all taxpayers
- Secondary Rebate: For taxpayers aged 65+
- Tertiary Rebate: For those aged 75+
These reduce your tax owed and may result in a refund if your employer overpaid through PAYE.
8. Interest on Certain Debts
In limited cases, SARS may allow deductions on:
- Student loan interest
- Home loan interest (only under very specific business or rental income conditions)
These are rare and often require proof that the loan is tied to income generation.
9. Investment-Related Deductions
You might be eligible to claim:
- Interest earned on a savings account (up to a limited amount is tax-free)
- Additional contributions to a retirement annuity (RA)
- Losses from allowable investment expenses (e.g., management fees)
10. Business Entertainment Costs
If you’re self-employed or running a small business, you may be able to deduct:
- Meals or client entertainment costs
- Venue hire or event hosting linked to income generation
Keep receipts and clearly show the business link.
Important Notes
- Keep proof of all expenses (receipts, invoices, statements)
- Only claim actual, allowable deductions in line with SARS guidelines
- Use the SARS eFiling platform to submit your return
- Consult a registered tax practitioner if unsure about eligibility
Conclusion
By claiming back legitimate deductions, you can reduce your taxable income and possibly receive a SARS refund. Whether it’s for medical bills, retirement savings, or work-related travel, understanding your allowable claims helps you stay tax-efficient. Always consult the latest SARS rules or seek professional advice to file correctly and get the refund you deserve.