SARS has releases Interpretation Note 28 (Issue 3) dated the 4th of March 2022 where they explain in par 4.6.2(b) under the Interest section that the revenue collectors are no longer going to allow the interest you pay on your bond to be allowed as part of your home office expense, if you are a remote employee or office bearer. Commission earners escaped this trap, but there was created another, using the term "mostly used"
As a rule, SARS has developed the home office deduction to be highly technical and intricate with a long list of if’s, but’s, and when’s before they will allow a home office deduction. Determining what can be deducted, what not, and to what extent, just adds to the layers of complexity. (Read the rest of the Interpretation Note and surely you will come to the same conclusion).
One can understand that this type of claim is bound to end up being multifaceted since the costs we want to deduct is actually the cost SARS seeks to tax you on – The salary or profit you need to pay interest, the municipal fees, etc, on your house.
A rental invoice is still allowed.
So, the free tax advice for today: It would serve you better to sell your house and rent a flat, your home office claim will become more favorable!
