Tax guide

Section 11 Tax Deductions: What Every South African Should Know

Section 11 of the Income Tax Act is where most individual and business deductions live. If you earn income from trade, you can deduct expenses actually incurred in the production of that income, provided they are not of a capital nature.

Section 11(a) - General Deduction Formula

Expenditure actually incurred in the production of income, not of a capital nature. This is the broadest deduction and covers most business expenses: office supplies, professional fees, bank charges, accounting costs, and any expense directly related to earning your income.

Section 11(e) - Wear and Tear (Depreciation)

Claim depreciation on assets used for trade: computers (3 years), office furniture (6 years), vehicles (5 years), and other equipment. SARS publishes Interpretation Note 47 with wear-and-tear rates for various asset types.

Section 11F - Retirement Fund Contributions

Deduct up to 27.5% of taxable income (maximum R430,000 from 1 March 2026) for pension, provident, and retirement annuity fund contributions.

Section 11(j) - Doubtful Debts

If you're in trade and have outstanding debts owed to you that are doubtful, you can claim an allowance. SARS allows 25% of doubtful debts for the first year and 40% for debts outstanding for 120+ days.

Disclaimer: This is general guidance based on the South African Income Tax Act and published SARS Interpretation Notes as at the 2026/2027 year of assessment (1 March 2026 – 28 February 2027). It is not professional tax advice. Deductibility depends on your facts. Confirm current figures on sars.gov.za before you file.

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