Deductions Flashcards
S11(a)
Expenditure or losses actually incurred in the production of income that is not capital in nature
S7 B
Variable remuneration: overtime, bonuses
100% deductible
S11 (c)
Legal fees
100% deductible
S11 (cA)
Restraint of trade
Lower of 1/3 or 1/years restricted
S11(d)
Repairs: Fully deductible
Improvements: not deductible
S11 (i)
Bad debts
100% deductible
S11(j)
Allowance for doubtful debts
25% every year
Add prior year
Subtract current year
S11(l)
Contributions: medical aid, pension
100% deductible
S11 A
Pre trade expenditure
100% deductible only if it would be deductible if they were carrying on a trade.
S11(gB)
Renewal of patent
100% deductible
S11(gC)
Acquisition of:
Patent/copyright - 5%
If less than R5000 (100% deductible)
Design - 10%
S11(lA)
Broad based employee scheme
Deduction = MV - consideration
Limited to R10000 per employee.
S11(m)
Remuneration of retired employees
100% deductible
S11 D
Research and Development
100% deductible
If funding an R+D = 150% deduction
Capital (50:30:20)
Building (5%)
S12H
Learnership agreement
???
S18 A
Donation to PBO
Deductible in full limited to 10% of taxable income
S20
Set off of assessed losses
100% deductible
S24
Credit agreements and debtors allowances
25% or more receivable after 12 months
Deduct amount x Gross profit%
Add prior year
Subtract current year
S24 C
Allowance for future expenditure on contracts
(Contract cost/contract price x income received) - actual expenditure
Add prior year
Subtract current year
S22
Trading stock
Opening: deduct amount added back last year
Closing: add back lower of cost or MV
Purchases: 100% deductible
Donations : deduct MV
Recoupment: deduct MV
S23 F
Any stock not held loses its deduction
S24 I
Gains/losses in foreign exchange transactions
???
S25 D
Determination of taxable income in foreign currency
All amounts must be converted to the currency of the republic
