Four things you didn't know you could deduct tax from
With the global economy still recovering from recent recessions, many businesses in South Africa are in a difficult financial position. So, it's important for you as a business owner to make good decisions when it comes to saving money and cutting costs.
And one of the most effective ways of saving money is to make savings count on your tax returns!
Tax might seem like a complex concept to you, but it's really not. In fact, there are many ways you can use it to your advantage.
Here are some tax-saving tips to implement in your business...
Four things your business can deduct tax from
#1: Office supplies
You can deduct the office supplies you buy. Hang onto the receipts – these expenses will offset your taxable business income. You can claim for supplies like pens and printer cartridges – and also big things like desks and printers. So, it's necessary to keep a list of everything you buy. Even if you do so out of your own pocket.
#2: Meals and entertainment
General tax law states that you can deduct business expense from income if you incurred the expenses in the process of generating income. Any income not capital in nature, that is. This means that any lunch, coffee, etc. expenses you incur while entertaining potential clients, for example, can all be deducted from your tax return as a business entertainment expense.
Taxpayers! If you are an individual tax payer in South Africa, you are:
1. Among the highest individual tax payers in THE WORLD.
2. Probably giving up MORE THAN HALF of your monthly salary to the taxman.
3. One of 5.7 million people that are PAYING for a population of 50 MILLION!
STOP handing money over to SARS today!
SAVE on tax when you do your tax return – you only need to do 6 things!
GET the full details here in our exclusive, never released before, report.
#3: Travel expenses
Much like entertainment deductions, any travel costs you incur in the process of generating income, you can deduct. It's a legitimate expense! Not only fuel, but also flights, hotels, etc. Be sure to keep track of all travel logs and expenses. You can also deduct daily travel expenses. Using an electronic trip logger might be helpful to do this.
#4: Educational costs
If you're a small business owner, you can deduct an employee's educational expenses. But only if the courses apply to their job. Self-employed business owners can write off some of their own educational expenses. Transportation to and from the classes are also deductible.