Staff author
Home office expenses: What SARS actually allows you to claim
Taxpayers who work from home can claim specific household expenses as tax deductions. Section 23(b) of the Income Tax Act outlines rigid criteria regarding the exclusivity of the workspace and the amount of time spent there.
How it works
Your workspace must be a dedicated, distinct area used regularly and exclusively for work. For salaried employees, more than 50% of your total working hours must be performed in this space. The claim is calculated on a pro-rata basis, determining the square meterage of the office against the total size of the residence. This percentage is then applied to qualifying expenses like rent, bond interest, and municipal rates.
Specific Scenarios
* Scenario 1: Renting an apartment. You rent a two-bedroom apartment and use one bedroom solely as an office. The office takes up 20% of the floor space. You claim 20% of your monthly rent and electricity as a deduction against your income.
* Scenario 2: Owning a home. You own a house and have a dedicated study. You can claim a pro-rata portion of the interest on your bond and the municipal rates, but you cannot claim a portion of the bond's capital repayment.
* Scenario 3: Employer requirements. Your company closes its physical office and mandates remote work. You set up a dedicated room. You must obtain a formal letter from your company's HR department confirming this arrangement to satisfy SARS verification checks.
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When you are not eligible
You cannot claim home office expenses if you only work from home occasionally or after hours. If your employer provides you with an office at their premises and you simply choose to work from home out of convenience, SARS will disallow the claim.
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Disclaimer:This article is for informational purposes only and does not constitute financial or tax advice, and is not exhaustive. Tax laws are complex and subject to change. We strongly recommend consulting with our registered tax practitioner to address your specific circumstances.