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Individual Taxpayers! Expenses you are allowed to deduct

Tax deduction summary for individual tax payersYou need to submit your tax return and don’t know which expenses you are allowed to deduct. Help!

It is that time of year again. Everyone rushing around to find anything and everything to possibly claim back from the Receiver.

Life will be much easier however once you have a checklist of deductions you may qualify for or not. Follow these simple guidelines and submitting your taxes will become a breeze.

As a normal salaried individual, the following list is the expenses you are allowed to deduct as tax deductions:

Pension Fund  Contributions

If you or your employer contribute to a registered pension fund, you are entitled to deduct these contributions, limited to the greater of:

  • 7,5% of the income derived from the employment that contributes to this retirement fund, or
  • R1,750

Any portions of the contributions not deducted, cannot be carried forward to the next tax year, but is very well accumulated for calculating your tax free portion of the lump sum that will pay out upon your retirement.

Retirement Annuity Fund Contributions

Any contributions to a registered retirement annuity fund are deductible, but limited to the greater of:

  • R1,750
  • R3,500 less the amount you claimed against your pension fund contributions (previous point)
  • 15% of the taxable income from income that does not contribute towards your retirement fund (remuneration not subjected to pension fund contributions)

Any portions of the contributions not deducted, may be carried forward to the next tax year.

Income Replacement Policies

An income protection policy is a policy that will cover an individual against the loss of income as a result of illness, injury, disability or unemployment (this does not refer to any UIF benefits).

The total premiums paid are tax deductible if the benefits, when paid to that person, will be taxable. (When you successfully claim against the policy due to any of the above mentioned, the amount paid by the insurer will be included as income in your taxable income calculation).


Donations are tax deductible, if they are made to:

  • public benefit organisations, and are limited to
  • 10% of taxable income before the deduction of donations and medical expenses, where the taxpayer
  • is in receipt of a valid section 18A donations certificate.

In next week’s issue we will cover the remaining 3 major expenses you are allowed to deduct, which are:

  1. Travel expenses
  2. Medical expenses
  3. Home office expenses


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