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The short answer
SARS allows a home office deduction where a room is specifically equipped for your trade and used regularly and exclusively for it; rent, rates, electricity, cleaning and repairs are apportioned by floor area, and bond interest is not deductible from 2023. Equipment is claimed through wear and tear rather than in full, and travel needs a logbook.
A freelancer in South Africa is taxed on profit, not on everything clients pay. What you spend to earn the income can, within SARS's rules, reduce taxable income. The rules are strict about two things: the expense must relate to earning the income, and capital spending is treated differently from day-to-day costs. This guide covers the home office, which has its own detailed SARS page, and the other costs freelancers most often ask about.
The home office
SARS's home office expenses page (last updated 18 June 2025) sets out the conditions under section 23(b) of the Income Tax Act. The room must be:
- Specifically equipped for your trade: a desk, computer and the tools you need, not a dining table you clear each evening.
- Used regularly and exclusively for that trade: a spare room used as an office and also as a guest room fails the test.
The page also sets extra tests for employees (more than half of duties performed in the home office, or for commission earners, more than half of duties performed away from an employer's office). It is written for employees and office holders; it does not deal separately with the self-employed. For a freelancer, the room tests above are the core, and a registered tax practitioner can confirm how they apply to your circumstances.
Which costs, and how much
The page lists costs closely linked to the premises that may be claimed: rent, repairs to the premises, rates and taxes, cleaning and electricity. It notes that bond interest is no longer deductible from 2023 under the updated Interpretation Note 28. These premises costs are apportioned by floor area:
Deductible share = home office area (m²) ÷ total area of the home (m²) x total premises costs
Wear and tear on office equipment and furniture is claimed separately and is not apportioned by floor area. Capital spending itself is excluded, which is why a new laptop is usually claimed through a wear-and-tear allowance over time rather than in full in the year you buy it.
Worked example
Example (illustrative only): your flat in Randburg is 80 m² and the office is 10 m², so 10 ÷ 80 = 12.5%. Annual rent is R120,000, electricity R18,000 and cleaning R6,000: total R144,000. The deductible share is 12.5% x R144,000 = R18,000. At a 31% marginal rate (the band for taxable income of R383,101 to R530,200 in SARS's 2026/27 tables), that deduction is worth R18,000 x 31% = R5,580 in tax.
Other common freelance costs
| Cost | How it is usually treated | Records to keep |
|---|---|---|
| Laptop, camera, phone | Capital: claimed through a wear-and-tear allowance; personal use apportioned out | Invoice, date bought, business-use estimate |
| Software and subscriptions | Day-to-day cost if used for the work | Invoices or statements |
| Internet and phone bills | Business share of the bill | Bills and a basis for the share |
| Travel to clients | Business travel, supported by a log | SARS travel logbook, receipts |
| Professional bodies, training | Where it relates to current work | Receipts, course outline |
| Bank and payment fees | Cost of receiving income, e.g. Payoneer or conversion fees | Statements |
| Accountant's fees | Cost of running the business | Invoice |
This table summarises how such costs are commonly treated, not a SARS ruling. SARS's home office page links to a separate travel logbook page for travel claims, and it is the logbook that supports them.
Nigeria-related costs
- Fees for receiving payments from Nigerian clients (conversion, transfer and platform charges) are part of earning the income; keep statements. See Payoneer fees into a South African bank.
- A trip to Lagos for a client project may be business travel; a December family visit is not, even if you see a client while there. Keep the client's invitation and the itinerary.
- Nigerian withholding tax is not an expense in the ordinary way; it is relieved under section 6quat. See claiming Nigerian withholding tax in SA.
What to check first
- Measure the office and the whole home, and photograph the office set-up.
- Keep a folder (paper or digital) for every invoice and receipt, by tax year.
- Separate business and personal spending, ideally with a separate account.
- Reflect expected expenses in your IRP6 estimate; see IRP6 explained.
- Ask a registered tax practitioner to review the first year's claims.
Where Pryme fits
A Pryme Business Account keeps business money separate from personal money, and the Finance agent can sort expenses by category and flag receipts that are missing before your return is due; a person approves, and nothing is filed for you.
Questions people ask
Can freelancers claim home office expenses in South Africa?
SARS allows it where the room is specifically equipped for your trade and used regularly and exclusively for it. Premises costs are apportioned by floor area.
Can I claim bond interest for my home office?
No. SARS's page says bond interest is no longer deductible from 2023 under the updated Interpretation Note 28.
Can I deduct a new laptop in full?
Capital spending is excluded from the home office claim; equipment is usually claimed through a wear-and-tear allowance, with personal use apportioned out.
Does a home office affect capital gains tax when I sell my house?
Yes. SARS says the office taints the primary residence exclusion, which then applies only to the untainted portion.
Sources
- SARS: Home office expenses (last updated 18 Jun 2025) · accessed Oct 2026
- SARS: Budget 2026 frequently asked questions (updated 12 Aug 2026) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.