Admin Boss Tax Knowledge Hub

Business Expenses Tax Deduction

Updated: June 2026 5 min read
Quick Overview: You can deduct expenses incurred in the production of income, provided they are not of a capital nature and you have proof.
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Andre van Niekerk

Registered Tax Practitioner, Admin Boss

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Table of Contents
  1. Quick Answer
  2. Allowable Expenses
  3. Non-Allowable Expenses
  4. Record Keeping
  5. Frequently Asked Questions
Quick Answer

Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.

Allowable Expenses

Allowable expenses include rent, salaries, utilities, office supplies, marketing, professional fees, insurance, and vehicle costs for business use.

Non-Allowable Expenses

Non-allowable expenses include personal costs, entertainment (with exceptions), fines, penalties, and capital expenses. Domestic or private expenses are not deductible.

Record Keeping

Keep all receipts, invoices, and proof of payment for 5 years. Use a dedicated business bank account. Digital records are acceptable if legible.

Frequently Asked Questions

How do I claim this deduction on my tax return?

Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.

What documents do I need?

Keep receipts, invoices, tax certificates, logbooks, and any other proof of the expense. SARS may request these during verification.

Can Admin Boss help with my deductions?

Yes. Admin Boss is a registered tax practice that can review your deductions, ensure compliance, and maximise your tax savings. Visit adminboss.co.za/need-more-info/.

Need Help With Your Tax?

Admin Boss is a registered tax practice with over 20 years of experience helping South African individuals and businesses navigate SARS.