Self-Employed

Tax deductions for Freelancers

A reference to SARS-allowable deductions commonly discussed by freelancers, independent contractors, and gig workers in South Africa. Eligibility still depends on whether you have a trade or only a salary.

Common tax deductions for Freelancers in South Africa

For Freelancers, the lines that actually differ from the next profession are home office deduction, internet, phone, and data expenses (business-use portion only), computer equipment and office furniture (depreciated over useful life). Each one still has to be incurred in the production of income. A salary-only year is gated by section 23(m) before any of them count.

If this year is salary only, read section 23(m) — what still counts before treating the list below as claims.

Home office deduction - must be a dedicated room used regularly and exclusively for tradeSection 23(b)
Internet, phone, and data expenses (business-use portion only)Section 11(a)
Computer equipment and office furniture (depreciated over useful life)Section 11(e), IN 47
Retirement fund contributions - up to 27.5% of taxable income, max R430,000/year from 1 March 2026Section 11F
Accounting fees and invoicing softwareSection 11(a)
Business insurance, bank charges, and professional subscriptionsSection 11(a)
Bad debts written off (clients who didn't pay)Section 11(i)

Important: This is general guidance based on the Income Tax Act and SARS Interpretation Notes. It is not professional tax advice. Deductibility depends on your individual circumstances. Consult a registered tax practitioner for complex situations. All SARS section references are based on current legislation and may be subject to change.

OFO and IRP5 codes for Freelancers

Occupation codes N/A on the ITR12, and the source codes that usually show on a certificate for freelancer work.

OFO Occupation Code (ITR12)

Select one of these when SARS eFiling asks for your occupation:

  • N/AVaries by trade - select your specific occupation on eFiling

IRP5 / IT3(a) Source Codes

Common income source codes on your tax certificate:

  • 3616Independent Contractor
  • 3619Labour Broker
  • 3605Commission

OFO codes are from the Organising Framework for Occupations used by SARS on the ITR12 return. IRP5 source codes appear on the tax certificate issued by your employer or contractor. Codes are based on the current SARS eFiling system and may be updated by SARS periodically.

Guides that usually sit next to this work

Guide

Home Office Deduction

Guide

Retirement Annuity Deduction

Guide

Provisional Tax

Guide

Section 11 Deductions

Article

Provisional Tax in South Africa Explained Simply

Article

Freelancer Tax Guide South Africa - What You Must Know

Article

ITR12 Source Codes Explained (the Ones People Mix Up)

Review statements for Freelancer work

Upload bank statements. Taxzi flags lines that may qualify under SARS rules. Mixed shops stay out until you say what they were. You confirm every claim. This is guidance — not a filed return.

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