Working From Home in South Africa? How to Claim Home Office Expenses (2025)

With the rise of remote work, many South Africans are now working from home, either as freelancers, independent contractors, or employees. If this sounds like you, you might be wondering if you can claim any of your home-related expenses as a tax deduction from SARS. The good news is, in many cases, you can!

This guide will walk you through the key SARS requirements for claiming home office expenses and help you understand what you can deduct.

What Are Home Office Expenses for Tax Purposes?

Home office expenses are costs you incur for the part of your home that you use regularly and exclusively for your work or trade. SARS allows these deductions because that portion of your home is effectively being used for business purposes, similar to how a company deducts rent for its office space.

The deduction typically includes a pro-rata portion of your household expenses like rent or bond interest, rates and taxes, and electricity, as well as some direct costs.

Who Can Claim Home Office Expenses in South Africa?

The rules differ slightly depending on whether you are an employee or an independent contractor/freelancer (sole proprietor).

1. Independent Contractors, Freelancers, and Sole Proprietors:
   • You can generally claim home office expenses if you carry on your trade or business mainly from your home and have a dedicated space used regularly and exclusively for that purpose.
2. Salaried Employees (and Commission Earners):
   • The rules are stricter. You generally need to meet these conditions:
     • Your home office must be specifically equipped for your work and regularly and exclusively used for your duties.
     • Your duties must be performed mainly (more than 50% of your total work hours) in this home office.
     • If you earn a salary (not primarily commission), your employer must not provide you with an office space at their premises, OR if they do, your duties must be such that you are required to work from home.
     • If more than 50% of your remuneration is from commission or variable payments based on your work output, the "mainly performed" rule is usually easier to meet if your home office is your primary base of operations.

Key Principle: The "regularly and exclusively" rule is vital. If the space is also used for private purposes (e.g., a dining room table or a guest bedroom that's sometimes used as an office), it generally won't qualify.

What Expenses Can You Claim for Your Home Office?

If you meet the qualification criteria, you can typically claim two types of expenses:

1. Apportioned Household Expenses: These are costs related to the whole property that are then divided based on the size of your home office relative to the total size of your home. Common examples include:
   • Rent paid (if you rent your home).
   • Interest on your bond (if you own your home).
   • Rates and taxes.
   • Electricity and water.
   • Cleaning costs (for the whole property).
   • Repairs to the premises (general repairs, not specific to the office).
2. Direct Office Expenses: These are costs directly related only to your home office space and don't need to be apportioned. Examples:
   • Wear and tear (depreciation) on office equipment (computer, printer, desk, chair).
   • Repairs to equipment used in your home office.
   • Stationery, telephone calls (if a separate business line or itemised).
   • Internet connectivity (if a dedicated business line or a demonstrably apportioned cost).

How to Calculate Your Home Office Deduction

The most common method involves calculating the percentage of your home's total area that your dedicated office space occupies.

Basic Formula for Apportioned Expenses: (Area of Home Office (m²) / Total Area of Home (m²)) x Total Qualifying Household Expenses = Deductible Portion

Example: * Your home office is 15 m². * Your total home area (including the office) is 150 m². * Your office is therefore 10% of your total home area (15 / 150). * If your total qualifying household expenses (rent, electricity, rates) for the year were R100,000. * Your deductible apportioned home office expenses would be: 10% of R100,000 = R10,000.

You would then add any direct office expenses (like wear and tear on your office computer) to this R10,000.

Want an easier way to qualify and calculate?

Navigating the rules and doing the maths can be tricky. Amicus TaxBot makes it simpler!

Try the free Amicus TaxBot Home Office Expense Suite now!

Our guided tool helps you: 1. Determine if you qualify based on SARS criteria. 2. Accurately calculate your potential deduction. 3. Understand what evidence you need to keep.

Important Considerations & Record Keeping

• Exclusive Use is Key: SARS is strict on this. The office must not be used for any other domestic or private purpose.
• Capital Gains Tax (CGT) Implications: If you own your home and claim home office expenses, a portion of your home may be considered used for business purposes. This could have CGT implications when you eventually sell your home (as the primary residence exclusion might not fully apply to the office portion). It's wise to understand this.
• Keep Detailed Records: You MUST keep all supporting documentation:
  • Invoices for all expenses claimed.
  • A floor plan of your home showing the office area and total area, with measurements.
  • Photographs of your home office.
  • If you are an employee, a letter from your employer confirming the requirement to work from home or that they don't provide an office (if applicable).
  • Logbooks for travel if claiming any related costs.

Simplify Your Home Office Tax Claim

Don't miss out on a legitimate tax deduction if you're working from home. Understanding the rules is the first step.

• Calculate your potential deduction using the Home Office Expense Calculator.

Still have questions about home office deductions?

Our AI-powered assistant, Amicus, is ready to help you understand the specifics based on SARS guidelines and the Income Tax Act.

Ask Amicus Your Tax Questions Here