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// GUIDE

What Can I Claim as a Sole Proprietor in South Africa?

Short answer: You can deduct expenses you paid to earn your business income, as long as they are not private or capital in nature and you can prove them. Keep the slip or invoice for every one.

Last checked 19/10/2026. Figures from SARS.

The basic rule

SARS allows a deduction for expenditure and losses actually incurred in the production of your income, in the course of your trade. This is the general deduction in section 11(a) of the Income Tax Act. Private expenses are not deductible, and capital items such as buying a vehicle or equipment are dealt with through allowances instead of a full deduction in one year.

Examples of business costs people commonly claim

  • Stock and materials you bought to sell or to make your product.
  • Rent for business premises, and the business share of utilities.
  • Advertising and marketing.
  • The business share of phone, data and internet.
  • Professional fees, such as bookkeeping or legal work for the business.
  • Bank charges on your business account.
  • Business insurance.
  • Business travel, supported by a logbook.
  • Wear and tear on equipment you use in the business (section 11(e)), spread over its useful life.

Whether a particular cost qualifies depends on your facts. When in doubt, ask SARS or a registered tax practitioner.

What is generally not deductible

  • Private or domestic costs, such as your own groceries or family expenses.
  • Fines and penalties.
  • Entertainment expenses are generally disallowed (section 23(o)), with limited exceptions.
  • Anything you cannot support with a slip, invoice or other record.

Keep your proof

SARS expects you to keep your supporting documents for five years from the date you submit the return. A slip photographed on the day is far easier to find than a faded one in a drawer. See also: how long to keep slips for SARS.

How OptiTax does this on WhatsApp

  1. Send a photo of each slip or invoice on WhatsApp. It is read and filed for you, with VAT and category included.
  2. Ask "what did I spend on fuel last month" or any other category.
  3. Ask for your tax estimate at any time to see what you owe or get back.

Start free on WhatsApp from R99 a month

Frequently asked questions

Can I claim my cell phone?

Only the business part. If you use the phone for both, work out a sensible business share and keep your basis for it.

Can I claim lunch with a client?

Entertainment is generally not deductible under section 23(o). Ask a registered tax practitioner about your specific case.

What if I lost the slip?

Ask the supplier for a copy, or use a bank statement together with whatever else shows what the payment was for. A bank line alone may not be enough.

Sources

Related guides

Valid Tax Invoice: What SARS Needs on a Slip or InvoiceWhat must be on a tax invoice for a South African VAT vendor, the R5 000 and R50 rules, and what to do when details are missing.Home Office Deduction for a Sole Proprietor in South AfricaHow SARS treats home office costs for the self-employed, what you need to show, and where to check your own case.VAT Registration Threshold in South Africa (and How to Calculate 15% VAT)When a South African business must register for VAT, the voluntary threshold, and how to work out 15% VAT on a price.

All answers

General information, not tax advice. Check your own situation with SARS or a registered tax practitioner.