Claiming deductions for business expenses working as an independent contractor for a foreign company
By Marc Sevitz · Updated
I have some expenses directly incurred in generating this income (telecoms costs, software licenses, computer equipment depreciation and a portion of my electricity and rent for the home office, etc). I don't have an IRP5 from them since I'm not an employee and they aren't a South African company. I have completed your very helpful wizard driven process for completing a reference ITR12, but the final step says that I can't depreciate personal items, claim home office expenses or other expenses without filling in the IRP5/IT3a section.
Is it possible to claim for these expenses in my situation (approx R48,000 on R916,000 revenue)?
You would include all of this under the Local Business Income section including the income and all the expenses. We will ask you individual for these amounts. Put everything there.