JHB 
For many South Africans employed by overseas companies, working from home is the norm. It’s only natural to wonder whether you can claim a tax deduction for your home office costs. While it may sound simple, the rules in the Income Tax Act make this a far more complex issue—especially for salaried employees.
Unlike commission earners, who generally enjoy more flexibility, salaried staff must navigate far stricter requirements. Even if you work remotely on a full-time basis, you’ll need to meet specific legal tests before SARS will consider your claim.
The legislative framework
The rules for deducting home office expenses are rooted in three key provisions of the Income Tax Act:
Section 11(a)
The general deduction provision, allowing expenses incurred in producing income (excluding capital items) to be claimed.
Section 23(b)
Restrictions on claiming expenses for premises primarily used for domestic purposes, with an exception for dedicated workspaces.
Section 23(m)
Limitations placed on salaried employees, disallowing most deductions except for certain narrowly defined costs.
Employment is considered a form of “trade” for tax purposes, which means an employee’s income is theoretically eligible under Section 11(a). However, these provisions must always be applied alongside the more restrictive Sections 23(b) and 23(m).
What qualifies as a deductible home office?
Section 23(b) only allows a home office claim if:
The area is a specifically designated workspace used exclusively for work;
The space is appropriately equipped for the duties of your role; and
More than 50% of your work duties are performed there.
For salaried employees, the emphasis is on exclusivity and the percentage of duties performed in the space. A spare bedroom occasionally used for work will not qualify.
The key stumbling block for fixed-salary earners
Even if you meet the above conditions, Section 23(m) can limit your deductions significantly. If you earn a fixed salary (without more than 50% of your income coming from commission or variable pay), most expenses are disallowed.
This means you generally cannot claim for:
- Internet and phone costs
- Stationery and office supplies
- Professional fees (e.g. accounting)
Instead, you may only claim a proportionate share of expenses directly related to the workspace itself, such as rent, electricity, and cleaning costs—provided the strict conditions are met.
Best practice before you claim
If you are a full-time remote employee considering a claim for home office costs, ensure that:
- Your employer provides a written confirmation of your remote working arrangement.
- The workspace is used exclusively and regularly for your job duties.
- Over 50% of your work is done in that specific space.
- Your claim is limited to the allowable categories of premises-related costs.
Even with these safeguards, SARS applies the rules conservatively and may request evidence during an audit.
Final thoughts
While the law theoretically allows salaried employees working from home to deduct certain home office costs, the practical reality is far more limited. Foreign-employed South Africans should be especially cautious, as the burden of proof rests entirely with the taxpayer.
Our qualified tax practitioners can help assess whether you meet the strict requirements and prepare the necessary supporting documents to reduce the risk of SARS disallowing your claim. Reach out to our income tax team for support.