SARS published Updated FAQs on the deductibility of Home office expenses

08 December 2021
Tax
South African Accounting Academy

This follows the webinar that was hosted by SARS on ‘Home Office Tax Requirements’ on 9 July 2021.

The FAQs are based on persons in employment who do not earn mainly commission (unless expressly stated otherwise)

The document now consists of 33 FAQs in total.

SARS also makes reference to refers to Draft Issue 3 of Interpretation Note 28 “Deductions of Home Office Expenses Incurred by Persons in Employment or Persons Holding an Office” published on 15 November 2021. The deadline for public comment is 14 January 2022. You can access the draft interpretation note 28 here: https://www.sars.gov.za/wp-content/uploads/Legal/Drafts/LPrep-Draft-2021-84-Draft-IN-28-Issue-3-Deductions-of-home-office-expenses-incurred-by-persons-in-employment-or-persons-holding-and-office-%E2%80%93-15-November-2021.pdf

You can access the existing Issue 2 of Interpretation Note 28 here: https://www.sars.gov.za/wp-content/uploads/Legal/Notes/LAPD-IntR-IN-2012-28-Home-Office-Expenses-Deductions.pdf

Click here to download the Updated FAQ document:

https://www.sars.gov.za/wp-content/uploads/Docs/Webinarsuppdocs/Home-office-expense-FAQs-updated-17-Nov-2021.pdf

How does this affect you and your clients?

Relevance to Auditors, Independent Reviewers & Accountants:

If you or your clients are Individuals who are in employment, and who do not earn mainly commission, they may wish to claim a deduction for home office expenses – especially since the majority of people were working from home as a direct result of the COVID-19 pandemic.
- And the odds are, that your client will come to you for advice and assistance.
The Income Tax Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.

Relevance to Your clients:

Individuals who are in employment, and who do not earn mainly commission, may wish to claim a deduction for home office expenses – especially since the majority of people were working from home as a direct result of the COVID-19 pandemic.

To stay current with all the latest changes and updates subscribe to our Monthly Compliance and Legislative Update series for R 250.00 per month. This gives you access to a monthly 2-hour webinar and monthly newsletter:
https://accountingacademy.co.za/profession/monthly-legislation-update

Get all your CPD online. SA Accounting Academy (SAAA) offers Subscription Plans, Live Webinars, Webinars On-Demand, Access to Experts, Courses, Articles and more:
https://cpd.accountingacademy.co.za.