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Section 30C (ITA) – Small business funding entities

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30C.    Small business funding entities

(1)     The Commissioner must approve a small business funding entity for the purposes of section 10(1)(cQ) if-

(a)     that entity is a trust, an association of persons or a non-profit company as defined in section 1 of the Companies Act that has been incorporated, formed or established in the Republic;

[Paragraph (a) substituted by section 55 of Act 25 of 2015 effective on 1 March 2015]

(b)

(i)      the sole or principal object of that entity is the provision of funding for small, medium and micro-sized enterprises; and

(ii)     the funding contemplated in subparagraph (i) is-

(aa)   provided by that small business funding entity for the benefit of, or is widely accessible to small, medium and micro-sized enterprises;

(bb)   provided on a non-profit basis and with an altruistic or philanthropic intent; and

(cc)   not intended to directly or indirectly promote the economic self-interest of any fiduciary or employee of that entity, otherwise than by way of reasonable remuneration payable to that fiduciary or employee;

(c)     that small business funding entity has submitted to the Commissioner a copy of the constitution or written instrument under which that small business funding entity has been established;

(d)     the constitution or written instrument contemplated in paragraph (c) provides that-

(i)

(aa)   the small business funding entity must have a committee, a board of management or similar governing body consisting of at least three natural persons who are not connected persons in relation to each other to accept the fiduciary responsibility of that small business funding entity;

(bb)   not more than fifty per cent of the members of the committee or a board of management contemplated in item (aa) may be employees or directors of any entity providing funding to that small business funding entity or persons who are connected persons in relation to any such employee or director;

(ii)     any single person may not directly or indirectly control the decision-making powers relating to that small business funding entity;

(iii)    the small business funding entity may not directly or indirectly distribute any of its funds or assets to any person other than in the course of furthering its sole or principal object;

(iv)    the small business funding entity may not directly or indirectly distribute any of its funds or assets to any employee in relation to that entity or a person that is a connected person in relation  to any such employee or to a person contemplated in subparagraph (i);

(v)     the small business funding entity is required to utilise substantially the whole of its funds for its sole or principal object for which it has been established;

(vi)    the small business funding entity must within 12 months after the end of the relevant year of assessment distribute or incur the obligation to distribute at least 25 per cent of all amounts received or accrued in respect of assets held, other than any amount received or accrued in respect of the disposal of any of those assets, during that year of assessment;

[Subparagraph (vi) substituted by section 52 of Act 23 of 2018 effective on 1 January 2019]

(vii)   a member of a committee, a board of management or similar governing body of the small business funding entity may not directly or indirectly have any personal or private interest in that small business funding entity;

(viii)  substantially the whole of the activities of the small business funding entity must be directed to the furtherance of the sole or principal object of that small business funding entity;

(ix)    the small business funding entity may not pay to any employee, office bearer, member or other person any remuneration, as defined in the Fourth Schedule, which is excessive, having regard to what is generally considered reasonable in the sector and in relation to the service rendered;

(x)     the small business funding entity must as part of its dissolution transfer its assets to-

(aa)   another small business funding entity approved by the Commissioner in terms of this section;

(bb)   a public benefit organisation contemplated in paragraph (a)(i) of the definition of public benefit organisation in section 30(1) that is approved by the Commissioner as a public benefit organisation in terms of that section;

(cc)    an institution, board or body which is exempt from tax under section 10(1)(cA)(i); or

(dd)   the government of the Republic in the national, provincial or local sphere;

(xi)    the persons contemplated in paragraph (d)(i) will submit any amendment of the constitution or written instrument of the small business funding entity to the Commissioner within 30 days of its amendment;

(xii)   the small business funding entity will comply with such reporting requirements as may be determined by the Commissioner from time to time; and

(xiii)  the small business funding entity is not knowingly and will not knowingly become a party to, and does not knowingly and will not knowingly permit itself to be used as part of, an impermissible avoidance arrangement contemplated in Part IIA of Chapter III, or a transaction, operation or scheme contemplated in section 103(5).

(xiii)   the small business funding entity is not knowingly and will not knowingly become a party to, and does not knowingly and will not knowingly permit itself to be used as part of, an impermissible avoidance arrangement contemplated in Part IIA of Chapter III, or a transaction, operation or scheme contemplated in section 103(5); and

[Subparagraph (xiii) amended by section 9(a) of Act 18 of 2023]

(e)     the Commissioner is satisfied that the entity does not have a person acting in a fiduciary capacity, who is disqualified in terms of section 6 of the Trust Property Control Act, 1988 (Act 57 of 1988), section 25A of the Nonprofit Organisations Act, 1997 (Act 71 of 1997), or section 69 of the Companies Act.

[Paragraph (e) inserted by section 9(b) of Act 18 of 2023]

(2)       Where the Commissioner is-

(a)     satisfied that any small business funding entity approved in terms of subsection (1) has during any year of assessment in any material respect; or

(b)     during any year of assessment satisfied that any small business funding entity approved in terms of subsection (1) has on a continuous or repetitive basis,

failed to comply with this section, or the constitution or written instrument under which that small business funding entity was established to the extent that it relates to this section, the Commissioner must notify the small business funding entity that the Commissioner intends to withdraw approval of the small business funding entity if corrective steps are not taken by the small  business funding entity within the period stated in the notice.

(3)     If no corrective steps are taken by the small business funding entity as contemplated in subsection (2), the Commissioner must withdraw approval of that small business funding entity with effect from the commencement of the year of assessment contemplated in subsection (2).

(4)     If the Commissioner has withdrawn the approval of a small business funding entity as contemplated in subsection (3) the small business funding entity must within six months after the date of the withdrawal of approval (or such longer period as the Commissioner may allow) transfer, or take reasonable steps to transfer, its remaining assets to any small business funding entity, public benefit organisation, institution, board or body or the government of the Republic, as contemplated in subsection (1)(d)(x).

(5)     If a small business funding entity is wound up or liquidated, the small business funding entity must, as part of the winding-up or liquidation, transfer its assets remaining after the satisfaction of its liabilities to any small business funding entity, public benefit organisation, institution, board or body or the government of the Republic, as contemplated in subsection (1)(d)(x).

(6)     If a small business funding entity fails to transfer, or to take reasonable steps to transfer, its assets as contemplated in subsection (4) or (5), an amount equal to the market value of those assets which have not been transferred less an amount equal to the bona fide liabilities of that small business funding entity must for the purposes of this Act be deemed to be an amount of taxable income which accrued to that small business funding entity during the year of assessment in which the withdrawal of approval in terms of subsection (4) or the winding-up or liquidation contemplated in subsection (5) took place.

(7)     Any person who is in a fiduciary capacity responsible for the management of any small business funding entity and who intentionally fails to comply with any provision of this section or of the constitution, or other written instrument under which that small business funding entity is established to the extent that it relates to the provisions of this section, shall be guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding 24 months.

[Section 30C inserted by section 49 of Act 43 of 2014 effective on 1 March 2015]

(8)     A person may not act in a fiduciary capacity if that person is disqualified in terms of section 6 of the Trust Property Control Act, 1988 (Act 57 of 1988), section 25A of the Nonprofit Organisations Act, 1997 (Act 71 of 1997), or section 69 of the Companies Act.

[Subsection (8) inserted by section 9(c) of Act 18 of 2023]

(9)     A person who fails to comply with the provisions of subsection (8) shall be guilty of an offence and liable, upon conviction, to a fine or to imprisonment for a period not exceeding 24 months.

[Subsection (9) inserted by section 9(c) of Act 18 of 2023]

“Risky policy” definition of section 29A of ITA

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“risk policy” means-

(a)     any policy issued by the insurer during any year of assessment of that insurer commencing on or after 1 January 2016 under which the benefits payable-

(i)      cannot exceed the amount of premiums receivable, except where all or substantially the whole of the policy benefits are payable due to death, disablement, illness or unemployment and excludes a contract of insurance in terms of which annuities are being paid; or

(ii)     other than benefits payable due to death, disablement, illness or unemployment, cannot exceed the amount of premiums receivable and excludes a contract of insurance in terms of which annuities are being paid; or

[Paragraph (a) substituted by section 50 of Act 15 of 2016 effective on 1 January 2016, applies in respect of years of assessment commencing on or after that date]

(b)     any policy in respect of which an election has been made as contemplated in subsection (13B);

[Definition of “risk policy” inserted by section 47 of Act 43 of 2014 effective on 1 January 2016, substituted by section 53 of Act 25 of 2015 effective on 1 January 2016]

“Adjusted IFRS value” definition of section 29A of ITA

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“adjusted IFRS value”, in respect of a policyholder fund or the risk policy fund, means an amount, which may not be less than zero, and which must be calculated in accordance with the formula-

I = (L + LIC + DL + PF) – PT– DC + DR

in which formula-

(a)     “I” represents the amount to be determined;

(b)     “L” represents, in respect of policies of the insurer, the aggregate amounts of-

(i)      insurance contract liabilities;

(ii)     investment contract liabilities; and

(iii)    reinsurance contract liabilities,

reduced by-

(aa)   insurance contract assets;

(bb)   reinsurance contract assets, and

(cc)   liability for incurred claims contemplated in paragraph (c),

the amounts of which are determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited annual financial statements: Provided that any amount that is payable to or receivable from a cell owner, referred to in the definition of “cell structure” in section 1 of the Insurance Act, that does not relate to a policy, must be disregarded: Provided further that the amount may not be less than zero;

[Paragraph (b) amended by section 32(1)(a) of Act 17 of 2023 and by section 25(1)(a) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

(c)     “LIC” represents the amount of the liability for incurred claims determined in accordance with IFRS 17 in respect of the policies of the insurer, net of amounts recognised in reinsurance contracts for liabilities for incurred claims, which are determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited annual financial statements, in respect of policies allocated to that fund;

(d)     “DL” represents for a policyholder fund the amount of deferred tax liabilities, determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited annual financial statements, in respect of assets allocated to that policyholder fund;

(e)     “PF” represents the amount calculated in terms of subsection (14) if a phasing-in amount is determined in terms of subsection (15)(a);

(f)      “PT” represents the amount calculated in terms of subsection (14) if a phasing-in amount is determined in terms of subsection (15)(b);

(g)     “DC” represents for a policyholder fund the amount of deferred acquisition costs determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited financial statements; and

(h)     “DR” represents for a policyholder fund the amount of deferred revenue determined in accordance with IFRS as annually reported by the insurer to shareholders in the audited financial statements;

[Definition of “adjusted IFRS value” (insertion by section 47(1)(a) of Act 43 of 2014 deleted by section 101(1)(a) of Act 15 of 2016) inserted by section 50(1)(a) of Act 15 of 2016 and substituted by section 46(1)(a) of Act 17 of 2017 and by section 15(1)(a) of Act 20 of 2022 effective on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

Section 24P (ITA) – Allowance in respect of future repairs to certain ships

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24P.  Allowance in respect of future repairs to certain ships

(1)     Notwithstanding section 23(g) there must be allowed to be deducted from the income of any person an amount of expenditure on repairs to any ship in respect of each year of assessment if-

(a)     that person is a resident;

(b)     that person carries on any business as owner or charterer of any ship; and

(c)     within five years of that year of assessment, that person is likely to incur an amount of expenditure on repairs to any ship used by that person for the purposes of that person’s trade.

[Subsection (1) substituted by section 47 of Act 25 of 2015 effective on 8 January 2016]

(2)     In determining the amount of the deduction under subsection (1) regard to-

(a)     the estimated cost of those repairs; and

(b)     the date on which those costs are likely to be incurred.

[Subsection (2) substituted by section 47 of Act 25 of 2015 effective on 8 January 2016]

(3)     The amount of the deduction allowed to a person under subsection (1) in respect of any year of assessment must be included in the income of that person in the following year of assessment.

[Section 24P inserted by section 44 of Act 43 of 2014 effective on 12 December 2013]

Subsection 2, 3, 4, 5, 6 of section 23O of ITA

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(2)     Where during any year of assessment any amount is received by or accrues to a small, medium or micro­ sized enterprise from a small business funding entity for the acquisition, creation or improvement, or as a reimbursement for expenditure incurred in respect of the acquisition, creation or improvement of trading stock, any expenditure incurred in respect of that trading stock allowed as a deduction in terms of section 11(a) or any amount taken into account in respect of the value of trading stock as contemplated in section 22(1) or (2) must be reduced to the extent that the amount is received or accrued from the small business funding entity for that purpose.

[Sub­section (2) substituted by section 29(a) of Act 34 of 2019]

(3)     Where during any year of assessment any amount is received by or accrues to a small, medium or micro­ sized enterprise from a small business funding entity for the acquisition, creation or improvement, or as a reimbursement for expenditure incurred in respect of the acquisition, creation or improvement of an allowance asset, the base cost of that allowance asset must be reduced to the extent that the amount is received or accrued from the small business funding entity for that purpose.

[Sub­section (3) substituted by section 29(a) of Act 34 of 2019]

(4)     Where during any year of assessment any amount is received by or accrues to a small, medium or micro-sized enterprise from a small business funding entity for the acquisition, creation or improvement of an allowance asset or as a reimbursement for expenditure incurred in respect of that acquisition, creation or improvement, the aggregate amount of the deductions or allowances allowable to that person in respect of that allowance asset may not exceed an amount equal to the aggregate of the expenditure incurred in the acquisition, creation or improvement of that allowance asset, reduced by an amount equal to the sum of-

(a)     the amount is received or accrued for that purpose; and

[Paragraph (a) substituted by section 41 of Act 17 of 2017 and by section 29(b) of Act 34 of 2019]

(b)     the aggregate amount of all deductions and allowances previously allowed to that person in respect of that allowance asset.

(5)     Where during any year of assessment any amount is received by or accrues to a small, medium or micro-sized enterprise from a small business funding entity-

(a)     for the purpose of the acquisition, creation or improvement of an asset other than an asset contemplated in subsection (2) or (3); or

(b)     as a reimbursement for expenditure incurred for the acquisition,  creation or improvement of an asset other than an asset contemplated in subsection (2) or (3),

the base cost of that asset must be reduced to the extent that the amount is received by or accrued from the small business funding entity for that acquisition, creation or improvement.

[Sub­section (5) amended by section 29(c) of Act 34 of 2019]

(6)

(a)     Where during any year of assessment-

(i)      any amount is received by or accrues to a small, medium or micro-sized enterprise from a small business funding entity; and

(ii)     subsection (2), (3), (4) or (5) does not apply to that amount,

[Subparagraph (ii) substituted by section 43 of Act 15 of 2016 effective on 1 March 2015, applies in respect of amounts received or accrued on or after that date]

any amount allowed to be deducted from the income of that small, medium or micro-sized enterprise in terms of section 11 for that year of assessment must be reduced to the extent of the amount received or accrued from a small business funding entity.

(b)     To the extent that the amount received or accrued from a small business funding entity exceeds the amount allowed to be deducted as contemplated in paragraph (a), that excess is deemed to be an amount received or accrued from a small business funding entity during the following year of assessment for the purposes of paragraph (a).

[Section 23O inserted by section 39 of Act 43 of 2014 effective on 1 March 2015]

“Allowance asset” definition of section 23O of ITA

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‘allowance asset’ means an asset as defined in paragraph 1 of the Eighth Schedule, other than trading stock, in respect of which a deduction or allowance is allowable in terms of this Act for purposes other than the determination of any capital gain or capital loss;

[Definition of “allowance asset” amended by section 43 of Act 15 of 2016 effective on 19 January 2017]

Section 23O (ITA) – Limitations of deductions by small, medium or micro-sized enterprises in respect of amounts received or accrued from small business funding entities

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23O.  Limitation of deductions by small, medium or micro-sized enterprises in respect of amounts received or accrued from small business funding entities

 

(1)       For the purposes of this section-

Subsections 2, 3, 4, 5 and 6 of section 23M of ITA

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(2)     Where an amount of interest, other than interest contemplated in paragraph (c) of the definition of “interest” in subsection (1), is incurred by a debtor during a year of assessment in respect of a debt owed to-

 

(a)     a creditor that is in a controlling relationship with that debtor;

[Paragraph (a) amended by section 19(1)(i) of Act 20 of 2021 effective on 31 March, 2023 and applicable in respect of years of assessment ending on or after that date (effective date in section 19(2) of Act 20 of 2021 as substituted by section 10 of Act 19 of 2022)]

 

(b)     a creditor that is not in a controlling relationship with that debtor, if that creditor obtained the funding for the debt advanced to the debtor from a person that is in a controlling relationship with that debtor;

[Paragraph (b) amended by section 19(1)(i) of Act 20 of 2021 effective on 31 March, 2023 and applicable in respect of years of assessment ending on or after that date (effective date in section 19(2) of Act 20 of 2021 as substituted by section 10 of Act 19 of 2022)]

 

(c)     a creditor that is not in a controlling relationship with that debtor, if that creditor forms part of the same group of companies as that debtor if the expression “at least 70 per cent of the equity shares in” in paragraphs (a) and (b) of the definition of “group of companies” in section 1 were replaced by the expression “more than 50 per cent of the equity shares or voting rights in”; or

[Paragraph (c) added by section 19(1)(i) of Act 20 of 2021 effective on 31 March, 2023 and applicable in respect of years of assessment ending on or after that date (effective date in section 19(2) of Act 20 of 2021 as substituted by section 10 of Act 19 of 2022)]

 

(d)     a creditor that is in a controlling relationship with that debtor, if that creditor, directly or indirectly through another creditor that is in a controlling relationship with that creditor, obtained the funding for the debt advanced to the debtor from a person that is in a controlling relationship with that creditor or that other creditor,

[Paragraph (d) added by section 19(1)(i) of Act 20 of 2021 effective on 31 March, 2023 and applicable in respect of years of assessment ending on or after that date (effective date in section 19(2) of Act 20 of 2021 as substituted by section 10 of Act 19 of 2022)]

 

and the amount of interest so incurred or related interest is not during that year of assessment-

 

(i)

 

(aa)   subject to tax in the hands of the person, creditor or other creditor referred to in paragraphs (a), (b), (c) or (d), to which the interest, other than interest contemplated in paragraph (c) of the definition of “interest” in subsection (1), or related interest accrues; or

[Subparagraph (aa) substituted by section 19(1)(k) of Act 20 of 2021(effective date in section 19(2) of Act 20 of 2021 as substituted by section 10 of Act 19 of 2022), by section 26(1)(g) of Act 17 of 2023 and by section 21(1)(f) of Act 5 of 2026 effective on 1 January, 2026 and applicable in respect of years of assessment commencing on or after that date]

 

 

(bb)   included in the net income of a controlled foreign company as contemplated in section 9D in the foreign tax year of the controlled foreign company commencing or ending within that year of assessment; and

 

(ii)     disallowed under section 23N,

[Subparagraph (ii) substituted by section 39 of Act 17 of 2017 effective on 18 December 2017]

 

the amount of interest allowed to be deducted may not exceed the amount determined in accordance with subsection (3): Provided that where any amount of interest, other than interest contemplated in paragraph (c) of the definition of “interest” in subsection (1), incurred or related interest is not included in the income of the person referred to in paragraph (i)(aa), and withholding tax on interest was or will be levied on that amount of interest, on payment thereof, under the provisions of Part IVB of this Chapter, the amount of interest to be regarded as not subject to tax as contemplated in paragraph (i)(aa) will be determined in accordance with the formula:

 

A = B x (C – D)

                C

 

in which formula-

 

(i)      “A” represents the amount to be determined;

 

(ii)     “B” represents the aggregate of any amount of interest incurred or paid in respect to which the provisions of Part IVB of this Chapter are or will be applicable;

 

(iii)    “C” represents the number 15; and

 

(iv)    “D” represents the rate at which withholding tax on interest has been or will be levied on such amount of interest under the provisions of Part IVB of this Chapter, multiplied by the number 100.

[Subsection (2) substituted by section 37(1)(e) of Act 43 of 2014 and amended by section 19(1)(j) and (l) of Act 20 of 2021 (effective date in section 19(2) of Act 20 of 2021 as substituted by section 10 of Act 19 of 2022), by section 26(1)(h) of Act 17 of 2023 and by section 21(1)(e) and (g) of Act 5 of 2026 effective on 1 January, 2026 and applicable in respect of years of assessment commencing on or after that date]

 

(3)     The amount of interest allowed to be deducted in respect of all debts owed as contemplated in subsection (2), in respect of any year of assessment must not exceed the sum of—

 

(a)     the amount of interest contemplated in section 24J and any other amount of interest in respect of that debt, received by or accrued to the debtor; and

[Paragraph (a) substituted by section 21(1)(h) of Act 5 of 2026 effective on 1 January, 2026 and applicable in respect of years of assessment commencing on or after that date]

 

(b)     an amount determined by multiplying the adjusted taxable income of that debtor for that year of assessment by 0,3,

 

reduced by so much of any amount of deductible interest contemplated in section 24J incurred by the debtor in respect of debts other than debts contemplated in subsection (2) as exceeds any amount not allowed to be deducted in terms of section 23N.

[Subsection (3) amended by section 37(1)(f) of Act 43 of 2014 and by section 28 of Act 34 of 2019, substituted by section 19(1)(m) of Act 20 of 2021(effective date in section 19(2) of Act 20 of 2021 as substituted by section 10 of Act 19 of 2022) and amended by section 18(a) of Act 42 of 2024 and by section 21(1)(i) of Act 5 of 2026 effective on 1 January, 2026 and applicable in respect of years of assessment commencing on or after that date]

 

(4)     So much of any amount of interest as exceeds the amount determined in terms of subsection (3) must be carried forward to the immediately succeeding year of assessment, and must be deemed to be an amount of interest incurred in that succeeding year of assessment in respect of a debt that qualifies for a deduction subject to the limitation in subsection (2).

[Subsection (4) substituted by section 18(b) of Act 42 of 2024 and by section 21(1)(j) of Act 5 of 2026 effective on 1 January, 2026 and applicable in respect of years of assessment commencing on or after that date]

 

(5)     Where an amount of interest is to be taken into account in terms of this section and in terms of section 23N, that amount of interest shall only be taken into account in terms of this section after section 23N has been applied.

[Subsection (5) substituted by section 37 of Act 43 of 2014 effective on 1 January 2015]

 

(6)     This section does not apply-

 

(a)     to a debt owed to a creditor as contemplated in subsection (2) in respect of which interest contemplated in section 24J is incurred, where-

 

(i)      that creditor directly or indirectly funded that debt amount advanced to that debtor with funding granted by a lending institution that is not in a controlling relationship with that debtor; and

[Subparagraph (i) substituted by section 21(1)(l) of Act 5 of 2026 effective on 1 January, 2026 and applicable in respect of years of assessment commencing on or after that date]

 

(ii)     that interest is determined with reference to a rate of interest that does not exceed the official rate of interest plus 100 basis points.

[Paragraph (a) amended by section 21(1)(k) of Act 5 of 2026 effective on 1 January, 2026 and applicable in respect of years of assessment commencing on or after that date]

[Subparagraph (ii) (section 39(c) of Act 17 of 2017 deleted by section 76(1) of Act 23 of 2020 deemed effective on 18 December, 2017) substituted by section 41(d) of Act 23 of 2018(instructions in section 41(d) of Act 23 of 2018 erroneously refer to the substitution of paragraph (ii) instead of subparagraph (ii) of paragraph (a) and substitute “or” at the end with a full stop)]

 

(b)     to any interest incurred by a debtor in respect of any linked unit that is held by a creditor as contemplated in subsection (2) where that creditor is a long-term insurer as defined in the Long-term Insurance Act, a pension fund or a provident fund, if-

 

(i)      the long-term insurer, pension fund or provident fund holds at least 20 per cent of the linked units in that debtor;

 

(ii)     the long-term insurer, pension fund or provident fund acquired those linked units before 1 January 2013; and

 

(iii)    at the end of the previous year of assessment 80 per cent or more of the value of the assets of that debtor, reflected in the annual financial statements prepared in accordance with the Companies Act for the previous year of assessment, is directly or indirectly attributable to immovable property.

[Section 23 inserted by section 61 of Act 31 of 2013 effective on 1 January 2015]

 

(6A)  This section does not apply to interest incurred on a loan utilised for mining purposes during any period prior to the commencement of production or during any period of non-production, as contemplated in paragraph (b) of the definition of “capital expenditure” in section 36(11).

[Subsection (6A) inserted by section 12(1) of Act 20 of 2022 effective on 31 March, 2023 and applicable in respect of years of assessment ending on or after that date]

 

(7)     For purposes of this section any exchange difference-

 

(a)     deducted from the income of a person as contemplated in section 24I(3) or (10A) is deemed to have been incurred by the person; or

 

(b)     included in the income of a person as contemplated in section 24I(3) or (10A) is deemed to have accrued to that person.

[Section 23M inserted by section 61(1) of Act 31 of 2013 and amended by section 41 of Act 15 of 2016. Subsection (7) added by section 19(1)(n) of Act 20 of 2021 and substituted by section 26(1)(i) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of years of assessment commencing on or after that date]