How do I pay tax on my rental income?

I own two rental properties from which I earn rental income. This is my only source of income - I do not earn a salary. In the 2021 tax year I let one of the properties' monthly rental pay directly into my long-time girlfriend's account (R7500 per month). The monthly levies, rates and agency fees (deductible expenses) were still paid from my account. At the end of the tax year, my girlfriend paid the lump sum amount (R7500 X 12 plus interest) that had accumulated in her account back to me.

How do we need to declare and pay tax in this situation?

You would need to declare the rental income and allowable deductions in your tax return. This is because you earn the rental income in your name and also you pay all the related expenses.

Below is a list of all the rental expenses you may be able to claim:

Electricity
Rates & taxes
Water
Levies to the local municipality
AirBnB agent and rental agent fees
Accountant'ss fee

Other costs you may be able to claim:

Bond interest (SARS allows only the interest to be deducted against the rental income, not the larger bond/mortgage/capital repayment)
Advertising costs
Insurance (this is for the property itself, not household contents)
Garden services
Security and property levies
Wear and Tear on furniture
Repairs and Maintenance


If your rental profit (i.e rental income less rental expenses) is more than R30 000 per year, you need to register as a provisional taxpayer. Provisional tax is paid twice annually on 31st August and 28th of February.


Please refer to our Provisional Tax Guide for further details.

Your girlfriend would need to declare the interest she earned in her tax return. It would be shown on the IT3(b) she receives from the bank.