Deductions | South Africa Tax Guide
Employee deductions are limited to the following:
- Business travel deduction against car allowance
- Certain medical expenses
- Contributions to pension and retirement funds
- Donations to certain public benefit organisations
- Specific expenditure against allowances of holders of public office
- Wear and tear allowances on equipment.
The following currently represent certain standard deductions which may be utilised by taxpayers-
Medical expenses : For taxpayers under 65 years of age, this deduction is limited to expenditure (including contributions) which exceeds 7.5% of taxable income.
For taxpayers over 65 years of age, there are no limitations and all expenses are deductible. Where the taxpayers qualifies as a "handicapped person", the taxpayer may deduct all qualifying medical expenditure in excess of R500 for the year.
Current pension fund contributions: This deduction is limited to the greater of R1 750 or 7.5% of remuneration from retirement funding employment.
Current retirement annuity fund contributions: This deduction is limited to the greater of 15% of taxable income from non-retirement funding employment, R1750 or R3 500 less Pension Fund contributions.