IC Markets
This is a general overview, not tax advice. SARS assesses each trader's facts individually, and the classification of your trading and the deductions you can claim depend on your specific situation. A registered tax practitioner is worth the fee.
If SARS treats your forex trading as a trade, which it does for active traders, you can deduct expenses incurred in producing that income, the same way any small business does. This reduces your taxable profit. The deductions have to be real, related to the trading, and supported by records. This guide covers what is reasonable to claim and where SARS pushes back.
The realistic deduction list
| Expense | How it is usually claimed | Notes |
|---|---|---|
| Internet and data | Apportioned to trading use | Keep a reasonable percentage, not 100% unless the line is trading-only |
| Platform and charting subscriptions | Full cost if used only for trading | TradingView, news feeds, scanner tools |
| Computer, monitors, UPS or power station | Wear and tear over the asset's life | Not the full cost in year one unless it is a small item |
| Home-office share | Portion of rent or bond interest, rates, electricity by floor area | Dedicated, regular, exclusive use only. SARS applies this strictly |
| Bank and transfer fees | Full cost | SWIFT fees, EFT charges, card fees on funding and withdrawals |
| Tax practitioner fees | Full cost | For preparing the trading portion of your return |
| Courses and education | Where they relate to producing the income | SARS may query these; keep invoices and justification |
The home-office rule
This is the deduction SARS scrutinises most. To claim a portion of your home costs you need a specific area used regularly and exclusively for trading. A corner of the lounge where the family also watches TV does not qualify. A spare room set up as a trading office does. You calculate the deductible share by the floor area of that room as a percentage of the home, then apply it to rent or bond interest, rates and taxes, electricity and cleaning. Keep a floor plan, measurements and photos.
Claiming a home-office deduction can have a knock-on effect when you sell your home, because that portion may not qualify for the primary-residence capital gains exclusion. For most traders the annual saving is worth it, but ask a practitioner if you own a high-value property.
What you cannot deduct
- Your trading losses as an "expense". Losses are handled separately, set against income if the activity is a trade, and possibly ring-fenced if it is not.
- The cost of a computer or car in full in year one, if it is a substantial asset. It is claimed as wear and tear over time.
- Personal use portions. If your internet, phone or laptop is 60 per cent personal, only 40 per cent is deductible.
- Anything if SARS treats your trading as a hobby rather than a trade. No trade, no deductions.
- Speculative "expenses" with no invoice. Every deduction needs a record.
Karabo set up a spare bedroom as a dedicated trading office, kept the TradingView and data-feed invoices, logged her internet at 50 per cent trading use, and claimed wear and tear on her two monitors and a power station over three years. Her practitioner also claimed the floor-area share of her bond interest and electricity for the office room. The deductions reduced her taxable trading profit by about R22,000 that year. She keeps every invoice in one folder and photographed the office setup in case of a query.
Records make the deduction
A deduction you cannot support is a deduction SARS will disallow on audit, with a penalty. For every expense keep the invoice, proof of payment, and a short note on how it relates to trading, and for apportioned items keep the basis for the percentage. Our records guide has the full checklist.
Traders either claim nothing, and overpay, or claim aggressively with no paperwork, and get caught. The right approach is boring: claim the real costs of running the operation, keep every invoice, be conservative on apportionment, and treat the home office rule as the strict test it is. Done properly it meaningfully lowers the tax bill.
Frequently asked
Can I deduct forex trading expenses in South Africa?
Yes, if SARS treats your trading as a trade. You can deduct the costs of producing the income: data, platform subscriptions, equipment wear and tear, bank fees, practitioner fees and a share of home-office costs, all supported by records.
Can I claim a home office for forex trading?
Only if you have an area used regularly and exclusively for trading. You claim the floor-area share of rent or bond interest, rates and electricity. SARS applies this strictly, so keep a floor plan, measurements and photos.
Can I deduct a trading course?
Potentially, where the course relates to producing your trading income. SARS may query education costs, so keep the invoice and be ready to justify it. If your trading is treated as a hobby, you cannot deduct anything.
Can I deduct my trading losses as an expense?
No. Losses are handled separately from expenses. If your trading is a genuine trade, a loss can be set against your other income; if it is a hobby, the loss may be ring-fenced.
Do I need to keep receipts?
Yes. Every deduction needs an invoice, proof of payment and a note on how it relates to trading. Apportioned items also need the basis for the percentage claimed. Unsupported deductions are disallowed on audit.