Tax legislation provides for a taxpayer to claim certain expenses incurred during a year of assessment against the income received. However, the type of expenses you can claim is dependent on the type of income you received.
Expenses allowed by the law for different types of income are the following:
- Medical scheme contributions
- Pension fund contributions
- Retirement annuity fund contributions
- Income protection
- Legal costs – under certain qualifying circumstances
- Wear-and-tear – in respect of certain assets
- Donations – to approved bodies
- Repayable amounts – amount received for services rendered as refunded by that person
- Bad and doubtful debts – employment related.
COMMISSION, INDEPENDENT CONTRACTORS, HOLDERS OF PUBLIC OFFICE
Taxpayers who earn commission income will have to consult section 11(a) of the Income Tax Act 58 of 1962 to determine exactly what expenses can be claimed.
Contact us and we will help you to identify all possible tax deductions available to you and to complete your tax return