Taxtips | Frequently Asked Questions

Only on the disposal of an asset. An asset includes all immovable property, gold coins, an aircraft with an empty mass of more than 450 kilograms, a boat exceeding 10 metres and a financial instrument. The following disposals are excluded: The first R1 500 000 on the primary residence, personal vehicles, retirement benefits, insurance policies, personal compensation and any gain made on any gambling game or competition.

All expenses you incur in the production of your income. SARS will however add back private use on various expenses especially if you work from home, for example on cell phone expenses, telephone expenses, vehicle expenses and home office. When items on a grocery slip is claimed for entertainment and other personal items was purchased with the entertainment items, they have to be marked as private to avoid, SARS adding back the total purchase as private use.

When a person receives commission income that is more than 50% of the total Income and only if a person must according to his or her contract incur expenses in the production of the commission income for example, travelling expenses, entertainment, cell phone expenses etc.

1. Contributions made to an approved medical aid.
2. Fees paid to a medical practitioner that was not covered by the medical aid.
3. Amounts paid to a nursing home or hospital, not covered by the medical aid.
4. Amounts paid to a pharmacist for prescription medicine supplied.

This does not include medicine you can obtain without a prescription.

If you are in receipt of a travel allowance or you have the right to use a company vehicle you need to keep a detailed logbook for SARS before we will be able to make any claim on your behalf at year end. A detailed logbook must reflect the following:

• Beginning and ending mileage for the day;
• Total business mileage as well as details of business trips;
• Total private mileage per day The logbook template can be downloaded from our website.