What expenses are tax deductible in South Africa?
Salary
- Pension fund contributions.
- Retirement annuity fund contributions.
- Provident fund contributions (only from 1 March 2016)
- Legal costs – under certain qualifying circumstances.
- Wear–and-tear – in respect of certain assets.
- Donations – to approved bodies.
What are all the possible tax deductions?
Popular tax deductions include the student loan interest deduction, the medical expenses deduction, the IRA contributions deduction and the self-employment expenses deduction.
What are the most common tax deductions?
20 popular tax deductions and tax credits for individuals
- Child tax credit.
- Child and dependent care tax credit.
- American opportunity tax credit.
- Lifetime learning credit.
- Student loan interest deduction.
- Adoption credit.
- Earned income tax credit.
- Charitable donations deduction.
What income is exempt from tax in South Africa?
Who is exempt from income tax in South Africa? Generally, if you earn less than R83,100 annually (or less than R128,650 if you’re older than 65), you don’t have to pay income tax.
What are non tax deductible expenses?
1- Typically non-deductible expenses: Political Contributions. Burial, funeral, and cemetery expenses. Legal fees and expenses. Clothes.
What is non allowable expenses in taxation?
The following are more common non-allowable expenses. Expenses that are not incurred: Provision of expenses. General provision of bad debt. Depreciation and loss on disposal capital assets.
What is standard tax deduction?
Mar 2, 2022. The standard deduction is a specific dollar amount that reduces your taxable income. For the 2021 tax year, the standard deduction is $12,550 for single filers and married filing separately, $25,100 for joint filers and $18,800 for head of household.
What can I claim without receipts?
Work-related expenses refer to car expenses, travel, clothing, phone calls, union fees, training, conferences and books. So really anything you spend for work can be claimed back, up to $300 without having to show any receipts. Easy right? This will be used as a deduction to reduce your taxable income.
What is a standard tax deduction?
How much does SARS deduct from salary?
2019 tax year (1 March 2018 – 28 February 2019)
| Taxable income (R) | Rates of tax (R) |
|---|---|
| 1 – 195 850 | 18% of taxable income |
| 195 851 – 305 850 | 35 253 + 26% of taxable income above 195 850 |
| 305 851 – 423 300 | 63 853 + 31% of taxable income above 305 850 |
| 423 301 – 555 600 | 100 263 + 36% of taxable income above 423 300 |
How can I reduce my income tax in South Africa?
10 Tips to Pay Less Tax
- Contribute towards a retirement fund.
- Open up a Tax Free Savings Account.
- Donate to a SARS registered charity.
- Join a Medical Aid Scheme.
- Keep a logbook if you receive a travel allowance.
- Keep a logbook if you drive a company car.
- Claim commission related expense if you are a commission earner.