Category: Section 11E (ITA) – Deductions of certain expenditure incurred by sporting bodies

Section 11E

 

  1. Paragraph (a) substituted by section 30 of Act 31 of 2013 effective on 1 May 2011.

 

  1. Section 11E inserted by section 20 of Act 35 of 2007, amended by section 17 of Act 17 of 2009 and substituted by section 21 of Act 7 of 2010 effective on the commencement of years ending on or after 1 January 2008.

Section 11E (ITA) – Deduction of certain expenditure incurred by sporting bodies

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11E.     Deduction of certain expenditure incurred by sporting bodies

 

For the purpose of determining the taxable income derived by-

 

(a)     any non-profit company as defined in the Companies Act; or

 

(b)     an association of persons that has been incorporated, formed or established in the Republic,

 

from carrying on any sporting activities falling under a code of sport administered and controlled by a national federation as contemplated in section 1 of the National Sport and Recreation Act, 1998 (Act No. 110 of 1998), there shall be allowed as a deduction from the income of that company or association-

 

(i)      expenditure, not of a capital nature, incurred by that company or association on the development and promotion, directly by that company or association ;or

 

(ii)     any payment made to any other company or association contemplated in this section for expenditure to be incurred on the development and promotion,

 

of sporting activities contemplated in paragraph 9 of Part I of the Ninth Schedule falling under that code of sport.