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Salary earners: Here are nine more deductions you can claim in terms of Section 23 (m) of the ITA

by , 30 January 2014
Section 23 (m) of the Income Tax Act (ITA) is great for salary earners. It outlines a number of deductions you're allowed to claim. Read on to find out about some of them...

In this article we gave you four deductions you're allowed to claim as a salary earner.

Now we're delivering on our promise to give more deductions you're allowed to claim.

Section 23 (m) of the ITA allows you to claim an additional nine deductions

The Practical Tax Loose Leaf Service says that as a salary earner, you're allowed to claim:

#1: Any allowance for doubtful debts. The doubtful debt allowance is 25% of expected bad debt, and the allowance is added back to your taxable income in the following year.

#2: Income continuation or protection insurance premiums you've incurred during the year, provided that any benefit you receive under the policy is included in your income.

For example, you may have taken out a policy that covers you against the loss of income as a result of illness, injury, disability or unemployment. The premiums are tax deductible, provided you include any benefit received from the policy in your taxable income in the event of a claim.

#3: Home office expenditure

#4: Travel or vehicle expenditure

#5: Subsistence allowance (limited to the discloser on the IRP5 tax certificate)

#6: Out of pocket medical expenses in excess of 7.5% of your taxable income before the deduction of medical expenditure.

#7: Donations made to approved organisations. These donations mustn't exceed 10% of your taxable income before the deduction of medical expenditure.

#8: Any amount, including any voluntary award that you received or that accrued to you in respect of services rendered or to be rendered. You'll only be able to claim if the amount was included in your taxable income and you have to refund to your employer.

For example, where you receive advances of commission and the commission doesn't materialise and you have to pay your employer back.

#9: Restraint of trade payment that you received and have to pay back to your employer for whatever reason.

Now that you know all about the deductions you're allowed to claim in terms of Section 23 (m) of the ITA, go ahead and make your claim.

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