Hide
Earn under R350,000? Click here to see why you still need to file to get your Tax Refund.
CLOSE
Get SARS Tax Dates and Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

How can one claim a software subscription service from SARS?

Posted 23 December 2014 under Tax Q&A


Let TaxTim
help you
submit your
Tax returns!



TaxTim will help you:
  • Do Your Tax Return Easily
  • Avoid penalties
  • Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started

Blog Categories


Ask TaxTim

Got a question you want answered about tax?

Visit our helpdesk →
How can one claim a software subscription service from SARS? More software companies are converting to software subscription services (either monthly or annually) instead of the traditional initial large amount.

This entry was posted in Tax Q&A and tagged , . Bookmark the permalink.

TaxTim TaxTim says:
5 January 2015 at 8:35

Please provide more detail of the software subscription and what it is used for?

Martin says:
5 January 2015 at 22:35

It's for graphic design software I use for graphic design layout work for my design business.

In the old days you bought software "of-the-shelf" and paid an once-off amount.

Now companies are turning to software subscription services whereby you pay either monthly or annually.

As with everything in life there are pros and cons with regards to that method.

TaxTim TaxTim says:
12 January 2015 at 8:00

The subscription cost that you pay monthly or annually will be written off in the year for which you have the expense - essentially you will just be recording the expense like any other and writing it off. So if you spend R10000 on subscriptions in the 2015 tax year then this is what will be expenses in that year.

Martin says:
13 January 2015 at 12:45

Ok, thanks. Even though it is Software? Is it still categorised as a software expense?

TaxTim TaxTim says:
13 January 2015 at 16:07

Unless you have developed the software yourself then it is still a normal expense in running the business. Such as if we were to purchase Pastel Accounting to use for our accounting services.


Get SARS Tax Dates and Deadlines in your Inbox
 

We'll tell you when you need to file, along with tax tips and updates.

Blog Categories


Let TaxTim
help you
submit your
Tax returns!



TaxTim will help you:
  • Do Your Tax Return Easily
  • Avoid penalties
  • Maximise your refund
Tim uses your answers to complete your income tax return instantly and professionally, with everything filled in in the right place.

Let Tim submit your tax return direct to SARS in just a few clicks!

Get started