(gC)  an allowance in respect of any expenditure actually incurred by the taxpayer during any year of assessment commencing on or after 1 January 2004 to acquire (otherwise than by way of devising, developing or creating) any-

 

(i)      invention or patent as defined in the Patents Act;

 

(ii)     design as defined in the Designs Act;

 

(iii)    copyright as defined in the Copyright Act;

 

(iv)    other property which is of a similar nature (other than Trade Marks as defined in the Trade Marks Act); or

 

(v)     knowledge essential to the use of such patent, design, copyright or other property or the right to have such knowledge imparted,

 

which shall be allowed during the year of assessment in which that invention, patent, design, copyright, other property or knowledge is brought into use for the first time by the taxpayer for the purposes of the taxpayer’s trade, if that invention, patent, design, copyright, other property or knowledge, as the case may be, is used by the taxpayer in the production of his or her income: Provided that-

 

(aa)   where that expenditure actually incurred by the taxpayer exceeds R5 000, that allowance shall not exceed in any year of assessment-

 

(A)    five per cent of the amount of the expenditure in respect of any invention, patent, copyright or other property of a similar nature or any knowledge essential to the use of such invention, patent, copyright or other property or the right to have such knowledge imparted; or

 

(B)    10 per cent of the amount of the expenditure in respect of any design or other property of a similar nature or any knowledge essential to the use of such design or other property or the right to have such knowledge imparted;