What Business Expenses Can You Claim in South Africa?

Updated July 2026 · Lightbizhub

The test is whether the expense was incurred in the production of income and is not of a capital nature. Everything else follows from that.

Generally claimable

• Stock and materials
• Salaries, wages and contractor payments
• Rent for business premises
• Utilities, telecoms and internet used for business
• Business insurance
• Bank charges on business accounts
• Professional fees, including accounting and legal
• Marketing and advertising
• Repairs and maintenance
• Business travel

Capital items are different

Equipment, vehicles and machinery are not deducted in full in the year of purchase. They are written off over time through wear and tear allowances.

This trips up businesses that buy a bakkie expecting to deduct the whole amount immediately.

Areas that need care

Home office

Claimable in limited circumstances, with specific requirements around the space being used regularly and exclusively for trade. The rules are stricter than most people assume.

Vehicle costs

Business use is claimable. Private use is not. Without a logbook you cannot substantiate the split, and SARS can disallow the claim entirely.

Entertainment

Limited and frequently queried. Keep the business purpose documented.

Not claimable

• Private and domestic expenses
• Fines and penalties
• Drawings taken by the owner
• Capital expenditure, other than through allowances

Records decide the outcome

An expense you cannot evidence is an expense you cannot claim. Keep invoices, not just bank statements — a statement shows money left the account, not what it bought.

Records must be kept for five years. Running business expenses through a personal account makes this materially harder and is the single most common reason small business claims fail on review.

General information, not tax advice. Thresholds, rates and deadlines change. Confirm current requirements with SARS or a registered tax practitioner before acting.