“film” means-
(a) a feature film;
(b) a documentary or documentary series; or
(c) an animation,
conforming to the requirements stipulated by the Department of Trade and Industry in the Programme Guidelines for the South African Film and Television Production and Co-production Incentive;
“exploitation rights” means the right to any receipts and accruals in respect of-
(a) the use of;
(b) the right of use of; or
(c) the granting of permission to use,
any film to the extent that those receipts and accruals are wholly dependent on profits and losses in respect of the film;
(1) For the purposes of this section-
“completion date” means the date on which a qualifying film is for the first time in a form in which it can be regarded as ready for copies of it to be made and distributed, for presentation to the general public;
12O. Exemption in respect of films
12N. Deductions in respect of improvements not owned by taxpayer
(1) If a taxpayer-
(a) holds a right of use or occupation of land or a building;
(b) effects an improvement on the land or to the building in terms of-
(i) a Public Private Partnership;
(ii) an agreement in terms of which the right of use or occupation is granted, if the land or building is owned by-
(aa) the government of the Republic in the national, provincial or local sphere; or
(bb) any entity of which the receipts and accruals are exempt from tax in terms of section 10(1)(cA) or (t); or
(iii) the Independent Power Producer Procurement Programme administered by the Department of Energy;
(c) incurs expenditure to effect the improvement contemplated in paragraph (b); and
(d) ……….
(e) uses or occupies the land or building for the production of income or derives income from the land or building,
the taxpayer must for purposes of any deduction contemplated in section 11D, 12B, 12BA, 12C, 12D, 12F, 12I, 12S, 13, 13ter, 13quat, 13quin, 13sex, or 36, and for the purposes of the Eighth Schedule, be deemed to be the owner of the improvement so completed.
[Subsection (1) amended by section 31(1)(d) of Act 22 of 2012, by section 40(1)(d) of Act 31 of 2013, by section 24(1) of Act 43 of 2014 and by section 30 of Act 23 of 2018. Para (e) amended by section 18(1) of Act 17 of 2023 effective on 1 March, 2023 and applicable in respect of assets brought into use on or after that date]
(2)
(a) When the right of use or occupation terminates, the taxpayer must be deemed to have disposed of the improvement to the owner of the land or building on the later of the date when-
(i) the right of use or occupation terminated; or
(ii) the use or occupation ended.
(b) If the right of use or occupation terminates and the taxpayer-
(i) continues to use or occupy the land or building; or
(ii) renews the right of use or occupation,
the renewed right of use or occupation must be deemed to be the same right of use or occupation as the right of use or occupation previously held by the taxpayer.
(3) This section does not apply if the taxpayer-
(a) is a person carrying on any banking, financial services or insurance business; or
(b) enters into an agreement whereby the right of use or occupation of the land or building is granted to any other person, unless-
(i) the land or building is occupied by that other person and that other person is a company that is a member of the same group of companies as that taxpayer in terms of such an agreement;
(ii) the cost of maintaining the land or building and of carrying out repairs thereto required in consequence of normal wear and tear is borne by the taxpayer; and
(iii) subject to any claim that the taxpayer may have against the other person by reason of the other person’s failure to take proper care of the land or building, the risk of destruction or loss of or other disadvantage to the land or building is not assumed by that other person.
(2) In determining the taxable income derived by any taxpayer in any year of assessment from carrying on any trade, there must be allowed as a deduction from the income of that taxpayer so derived any amount paid by way of a lump sum during the year of assessment by that taxpayer –
(a) to any former employee of the taxpayer who has retired from the taxpayer’s employ on grounds of old age, ill health or infirmity or to any dependant of that former employee; or
(b) under any policy of insurance taken out with an insurer solely in respect of one or more former employees or dependants contemplated in paragraph (a),
but only to the extent that the amount is paid for the purposes of making any contribution, in respect of any former employee or dependant contemplated in paragraph (a), to any medical scheme or fund contemplated in section 6A(2)(a)(i) or (ii):
Provided that no deduction may be allowed in terms of this section if the taxpayer making the payment, or a connected person in relation to that taxpayer, retains any further obligation, whether actual or contingent, relating to the mortality risk of any former employee or dependant contemplated in paragraph (a).
‘insurer’ means an insurer as defined in section 29A.
(1) For the purposes of this section –
‘dependant’, in relation to a former employee, means a spouse or any dependant (as defined in section 1 of the Medical Schemes Act);
12M. Deduction of medical lump sum payments
12L Deduction in respect of energy efficiency savings
(1) For the purpose of determining the taxable income derived by any person from carrying on any trade in respect of any year of assessment ending before 1 January 2031, there must be allowed as a deduction from the income of that person an amount in respect of energy efficiency savings by that person in respect of that year of assessment determined in accordance with subsection (2), subject to subsection (3).
[Subsection (1) substituted by section 19(1) of Act 34 of 2019, by section 9(1) of Act 20 of 2022 and by section 15(1) of Act 5 of 2026 effective on 1 January, 2026]
(2) The amount of the deduction contemplated in subsection (1) must be calculated at 95 cents per kilowatt hour or kilowatt hour equivalent of energy efficiency savings.
[Subsection (2) substituted by section 38 of Act 31 of 2013 and section 24 of Act 25 of 2015 effective on 1 March 2015]
(3) A person claiming the deduction allowed in terms of subsection (1) during any year of assessment must obtain a certificate issued by an institution, board or body prescribed by the regulations contemplated in subsection (5) in respect of the energy efficiency savings for which a deduction is claimed in respect of that year of assessment containing-
(a) the baseline at the beginning of the year of assessment;
(b) the reporting period energy use at the end of the year of assessment;
(c) the annual energy efficiency savings expressed in kilowatt hours or kilowatt hours equivalent for the year of assessment including the full criteria and methodology used to calculate the energy efficiency savings; and
(d) any other information prescribed by the regulations contemplated in subsection (5).
(4) A deduction must not be allowed in terms of this section if the person claiming the allowance receives any concurrent benefit in respect of energy efficiency savings.
(5) The Minister of Finance, in consultation with the Minister of Energy and the Minister of Trade and Industry, must make regulations prescribing-
(a) the institution, board or body that must issue the certificate contemplated in subsection (3);
(b) the powers and responsibilities of the institution, board or body contemplated in paragraph (a);
(c) the information that must be contained in the certificate contemplated in subsection (3) in addition to the information contemplated in that subsection;
(d) those benefits that constitute concurrent benefits for the purpose of subsection (4); and
(e) any limitation of energy sources in respect of which the allowance may be claimed.