Legal Fees Tax Deduction
Enter the deduction in the relevant section of your ITR12 tax return on SARS eFiling. Keep all supporting documents for 5 years.
Deductible Legal Fees
Legal fees for debt collection, employment disputes related to income, business contracts, and tax disputes are generally deductible if directly related to producing income.
Non-Deductible Legal Fees
Legal fees for divorce, criminal defence, personal injury claims, and estate planning are not deductible as they are not incurred in producing income.
How to Claim
Keep all invoices from your attorney detailing the nature of the work. The fees must be directly linked to income-producing activities.
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.