Home Office Tax Deduction in South Africa

If you work from home, you may be able to claim part of your home expenses as a tax deduction. SARS allows this deduction under specific conditions.

Who Qualifies?

Self-Employed / Business Owners

If you run your business from home, you can claim home office expenses proportional to your workspace.

Commission Earners

Employees earning more than 50% of their income from commission can claim home office deductions.

Salaried Employees

Generally cannot claim home office expenses. Your employer should provide necessary resources.

Requirements for a Valid Home Office

Your workspace must be:

Specifically equipped for work

Used regularly for business activities

Used exclusively for work (not dual-purpose)

What Counts as a Home Office

Dedicated room used only for work

Partitioned area in exclusive use

Converted garage or outbuilding

What Doesn't Count

Kitchen table

Living room couch

Bedroom desk used for personal activities too

What Expenses Can You Claim?

Housing Costs (Proportional)

Rent (if renting)

Bond interest (if owning - NOT capital repayments)

Property rates and taxes

Home insurance

Security costs

Utilities (Proportional)

Electricity

Water

Internet/WiFi

Office-Specific (Full Amount)

Office furniture depreciation

Computer and equipment depreciation

Office supplies

Repairs to office area

How to Calculate Your Deduction

Step 1: Measure Your Office

Get the floor area of your dedicated workspace. Example: 12m²

Step 2: Measure Total Home

Get the total floor area of your home. Example: 120m²

Step 3: Calculate Percentage

Office % = (Office Area ÷ Total Area) × 100 = (12 ÷ 120) × 100 = 10%

Step 4: Apply to Expenses

Expense	Annual Amount	Claimable (10%)
Rent	R120,000	R12,000
Electricity	R18,000	R1,800
Internet	R6,000	R6,000 (100%*)
Water	R4,000	R400
Total	R20,200

*Internet can be 100% if used exclusively for work

Record Keeping

Keep these documents:

Rental agreement or bond statement

Utility bills

Internet invoices

Floor plan/measurements

Photos of your office

Time log (if space is shared)

Common Mistakes

Claiming without exclusive use - Space must be 100% for work

Claiming capital repayments - Only bond interest qualifies

Overclaiming utilities - Must be proportional

No documentation - SARS may disallow without proof

Employees claiming incorrectly - Most employees don't qualify

LEDGA Home Office Tracking

LEDGA helps track home office expenses:

Expense categorization - Tag home office costs

Automatic calculations - Set your percentage once

Documentation storage - Upload bills and receipts

Tax reports - Summary for SARS submission