Technology

Tax deductions for Tech Contractors

A reference to SARS-allowable deductions commonly discussed by independent IT contractors, dev contractors, and technology consultants working on contract in South Africa. Eligibility still depends on whether you have a trade or only a salary.

Common tax deductions for Tech Contractors in South Africa

For Tech Contractors, the lines that actually differ from the next profession are home office expenses, computer equipment, software licenses and cloud subscriptions. 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 expenses - internet, electricity, dedicated workspace (must be used exclusively for work)Section 23(b)
Computer equipment - laptops, monitors, docking stations, peripherals (depreciation over 3 years)Section 11(e), IN 47
Software licenses and cloud subscriptions - IDE, GitHub, AWS, Azure, hostingSection 11(a)
Retirement fund contributions - critical for contractors with no employer pension (up to 27.5% of taxable income, max R430,000 from 1 March 2026)Section 11F
Professional indemnity and business insuranceSection 11(a)
Travel to client sites - fuel, e-tolls, parking, flights (logbook if using own vehicle)Section 8(1)(b) / 11(a)
Accounting, invoicing software, and tax preparation feesSection 11(a)
Co-working space fees and meeting room hireSection 11(a)
Technical courses, certifications (AWS, Azure, Kubernetes), and conference attendanceSection 11(a)

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 Tech Contractors

Occupation codes 2512, 2519, 2521, 2523 on the ITR12, and the source codes that usually show on a certificate for tech contractor work.

OFO Occupation Code (ITR12)

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

  • 2512Software Developer
  • 2519ICT Professional NEC
  • 2521Database Designer & Administrator
  • 2523Computer Network Professional

IRP5 / IT3(a) Source Codes

Common income source codes on your tax certificate:

  • 3616Independent Contractor
  • 3601Salary / Wages (if on payroll via agency)

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

Travel Allowance

Guide

Medical Tax Credits

Guide

Retirement Annuity Deduction

Article

Foreign Remote Work When You Still Live in South Africa

Article

Section 10(1)(o) — Foreign Employment Days, Not a Remote Job Title

Review statements for Tech Contractor 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.

Works with FNB, Standard Bank, Absa, Nedbank, Capitec, Investec and Discovery Bank PDF statements.

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