Tax Implications of Remote Work: How Working from Home Affects Your Tax Filings

Remote work isn’t just a global shift – it’s reshaping how South Africans hustle. And if you’re a freelance accountant tapping away from your home office, garden nook, or the corner table at your favourite café, your tax game needs to adapt just as quickly.

Claiming Your Space: Home Office Deductions

You’ll need:

A space used only for work, regularly (your guest room-slash-gym doesn’t count unless it’s strictly work-only)

Qualifying income (commissions or trade earnings – freelancers usually tick the box)

Proof of expenses, i.e.; your rent, electricity, water, even wear-and-tear on furniture

Keep notes on how much of your home is used for business – it’s all about ratios.

 

Blurring the Lines: Track Those Costs

You’ll want:

A clean separation of business vs. personal expenses

Software to tag work-related costs

Kms logs and receipts (yes, even for local coffee-fuelled meetings)

Organised records mean smoother filing and fewer SARS headaches.

 

Travel + Tax: What Counts Where?

Thinking of logging in from Mauritius for a few months? Lovely – but check your residency status:

If you’re out of SA for 183+ days (with 60 consecutive), you may tap into foreign income exemptions

But SA’s worldwide income tax rules still apply unless you’re officially a non-resident

Remote doesn’t always mean tax-free. Chatting to a tax advisor is smart, especially if your income crosses borders.

Think of it this way: your job is to focus on building your business. Their job is to keep SARS from knocking too loudly.

 

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Red Dot Now provides accounting, payroll and tax compliance services using the best of breed online technology.

Should you want to discuss this, or any of our services further, contact Ryan Coates on e-mail at ryan@reddotnow.com