Media release by SARS relating to home office expense claims

The media release issued by SARS highlights a number of factors which should be considered when an individual considers submitting claims in respect of home office expenses.

It states that here have been no changes to the legislation in relation to a “home office” and that the legal requirements therefore remain the same as before the Covid-19 pandemic.

The media release provides a brief summary of what a “home office” means and indicates, among others, that “an office, appropriately equipped, must have been set up at the place of primary residence”.

It is unclear why the media statement would highlight that the office have to be set up at the individual’s “primary residence”, when this requirement is not specified by legislation (i.e. in terms of the Income Tax Act, the home office does not have to be the individual’s primary residence, as defined by the Income Tax Act, in order for the individual to claim home office expenses). It may be that the media release merely wanted to indicate that the office have to be set up at a home, but incorrectly used the word “primary residence”, which has a very specific meaning in terms of the Income Tax Act.  

It is however important to note that the media release specifically highlights that all claims for home office expenses may be subject to further verification or audit by SARS and that there is a high likelihood that a taxpayer who claims home office expenses for the first time will be selected for verification or audit.

Find a copy of the media release here.

09/07/2021