Learn what business deductions you can write off
Running a business in South Africa is no small feat — between clients, invoices, and keeping your head above water, there’s a question that almost every entrepreneur asks at some point: “Can I write this off as a business deduction?”
The answer? It depends. SARS allows quite a few deductions for registered businesses and sole proprietors, but the rules are very specific.
Let’s break it down.
What Does “Writing It Off” Even Mean?
When you “write something off,” you’re deducting that cost from your taxable income. That means less tax to pay at the end of the financial year — legally. But SARS isn’t handing out deductions for everything. You’ve got to prove that an expense was “in the production of income” — in other words, it must be necessary, related to your business, and properly recorded.
Real-Life Business Deductions Examples: Can You Write These Off?
- Coffee at your desk? ✅
You meet a client at a coffee shop and pay for both of your cappuccinos. That’s a legitimate business meeting expense. Keep the receipt. - Netflix subscription? ❌
Unless you’re in media, advertising, or reviewing content professionally, SARS won’t see Netflix as a business tool. - Branded workwear? ✅
If your staff wear branded T-shirts or uniforms while working — that’s deductible. But your new designer sneakers? Probably not. - Laptop purchase? ✅
Laptops, phones, printers, internet — if they’re used for your business, they can be written off. You may even qualify for wear-and-tear deductions over a few years. - Home office? ✅ (but only if…)
If you use a dedicated space in your home exclusively for business, and it’s your main place of work — a portion of your rent, electricity, and even fibre can be deductible. But no, your kitchen counter doesn’t count.
So, What Can Business Deductions Can You Safely Write Off?
Here’s a simple checklist of common deductible expenses for small businesses:
- Accounting and legal fees
- Business travel (fuel, tolls, flights, accommodation — with logs!)
- Advertising and marketing
- Bank charges on business accounts
- Software subscriptions (e.g. Xero, Google Workspace, Adobe)
- Repairs and maintenance on business assets
- Telephone & internet (proportionate for business use)
- Training and development
- Salaries and wages
- Rent for business premises
Pro tip: Keep invoices, logbooks, bank proof, and summaries neatly filed. SARS LOVES documentation.
Be Careful: These Are Red Flags
- Entertainment expenses without proof of a business purpose
- Personal spending disguised as business purchases
- Huge jumps in declared expenses year-on-year
- No supporting paperwork
The Bottom Line
If you’re not sure whether an expense counts — ask yourself: “Would this exist if I didn’t run this business?” If the answer is no — you’re probably safe. But remember, SARS doesn’t play when it comes to audits. That’s why smart business owners use professional accountants who know what can (and can’t) be deducted.
Let Professional Accountants and Tax Consultants help You Maximise Your Deductions
At PATC, we help business owners legally reduce their tax bills while staying 100% compliant with SARS. No messy spreadsheets. No panic at tax season. Just digital-first, remote-friendly accounting and tax support that works for you. Let’s talk and get you one step closer to more tax savings.
