Not all finance charges qualify for tax deductions under Section 24J. In the new interpretation note 142 SARS explains what counts as “similar finance charges” and what doesn’t, helping taxpayers and practitioners avoid incorrect claims. If you work with clients who borrow or lend as part of their business, this guidance is essential reading.

Ever wondered why SARS doesn’t let you deduct all the interest you’ve paid on a loan in one go? You’re not alone — it’s a common frustration for many taxpayers. This article breaks it all down in a simple, easy-to-understand way. We explain why SARS spreads your interest deduction over the life of the loan (thanks to something called Section 24J), what “deemed interest” really means, and how it’s all tied to the effective interest rate. With practical examples and a fun, relatable tone, you'll finally make sense of why your tax deduction isn’t as big as you expected — and why it’s not all bad news in the long run.