Working from home: Employees get little tax relief
Many South Africans had to scramble to set up a home office when the country went into lockdown at the end of March in an effort to curb the spread of Covid-19.
When the lockdown was extended by another two weeks, employees started asking questions about the expenses they have been incurring while working from home.
There are limited circumstances under the Income Tax Act that allow salaried employees to claim deductions for expenses incurred while providing a service to their employers, says Joon Chong, tax partner at Webber Wentzel.
She says an individual who earns remuneration from an employer can only claim these home office expenses if their home office is equipped for and is “regularly and exclusively” used to work for the employer for which they earn remuneration.
Working hours
Joon adds that at least 50% of their remuneration must be variable – such as commissions or bonuses – and at least 50% of the working hours must be spent away from the employer’s office.
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