DEDUCTIONS

Deductions refer to expenses that are incurred directly in the production of your income (also described as your trade), which are not of a capital nature. The expenses must be incurred in the year of assessment in which the deduction is claimed. If your only trade income is from employment services, your deductions are restricted to deductions in respect of contributions to a pension fund or retirement annuity fund, legal expenses, wear and tear allowances, bad debt allowances, doubtful debt allowances, premium paid in terms of allowable insurance policies (typically loss of income policies), home office expenses and refunded awards for services rendered and refunded restraint of trade.