12H. Additional deduction in respect of learnership agreements
Category: PART I – Normal Tax (ITA)
Section 11(o) of ITA
(o) at the election of the taxpayer, an amount by which the cost to that taxpayer of any depreciable asset-
(i) which qualified for an allowance or deduction in terms of section 11(e), 11D, 12B, 12BA, 12C, 12DA, 12E or 37B(2)(a); and
[Subparagraph (i) substituted by section 11(1)(o) of Act 8 of 2007, by section 17(1)(d) of Act 35 of 2007, by section 25(1)(i) of Act 23 of 2018 and by section 11(1)(b) of Act 17 of 2023 effective on 1 March, 2023 and applicable in respect of assets brought into use on or after 1 March, 2023]
(ii) the expected useful life of which for tax purposes did not exceed ten years as determined on the date of original acquisition,
exceeds the sum of the amount received or accrued from the alienation, loss or destruction, of that asset and the amount of any allowance or deduction allowed in respect of that asset in that year or any previous year of assessment or which was deemed to have been allowed in terms of section 12B(4B), 12C(4A), 12DA(4) or 37B(4) or taken into account in terms of section 11(e)(ix), as the case may be:
Provided that for the purposes of this paragraph-
(aa) the cost of any plant, machinery, implements, utensils or articles shall be deemed to be the actual cost plus the amount by which the value of such plant, machinery, implements, utensils or articles has been increased in terms of paragraph (v) of the proviso to paragraph (e);
[Paragraph (aa) substituted by section 9 of Act 16 of 2004 and section 18 of Act 25 of 2015 effective on 8 January 2016]
(bb) the actual cost of any plant, machinery, implement, utensil or article acquired by the taxpayer on or after 15 March 1984 shall be deemed to be the cost of that plant, machinery, implement, utensil or article as determined under paragraph (vii) of the proviso to paragraph (e);
(cc) ……….
[Paragraph (cc) deleted by section 18 of Act 25 of 2015 effecive on 8 January 2016]
(dd) ……….
[Paragraph (dd) amended by section 17 of Act 35 of 2007 and deleted by section 18 of Act 25 of 2015 effective on 8 January 2016]
Provided further that no election may be made in terms of this paragraph by the taxpayer if the amount received or accrued from the alienation, loss or destruction of the asset was received or accrued from a person that is a connected person in relation to the taxpayer;
(p) ……….
(q) ……….
(r) ……….
(s) ……….
(t) ……….
(u) ……….
(v) ……….
Section 12C (ITA) – Deduction in respect of assets used by manufacturers or hotelkeepers and in respect of aircraft and ships, and in respect of assets used for storage and packing of agricultural products
12C. Deduction in respect of assets used by manufacturers or hotel keepers and in respect of aircraft and ships, and in respect of assets used for storage and packing of agricultural products
[Heading substituted by section 20 of Act 31 of 2005 and section 27 of Act 23 of 2018 effective on 17 January 2019]
(1) In respect of any –
(a) machinery or plant (other than machinery or plant in respect of which an allowance has been granted to the taxpayer under paragraph (b)) owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the definition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act and which was or is brought into use for the first time by the taxpayer for the purposes of the taxpayer’s trade (other than mining or farming) and is used by the taxpayer directly in a process of manufacture carried on by the taxpayer or any other process carried on by the taxpayer which is of a similar nature;
[Paragraph (a) substituted by section 11 of Act 19 of 2001, section 8 of Act 9 of 2005, section 20 of Act 31 of 2005, section 32 of Act 31 of 2013 and section 20 of Act 25 of 2015 effective on 8 January 2016]
(b) machinery or plant (other than machinery or plant in respect of which an allowance has been granted to the taxpayer under paragraph (a)) owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the definition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act and which was or is let by the taxpayer and was or is brought into use for the first time by the lessee for the purposes of the lessee’s trade (other than mining or farming) and is used by the lessee directly in a process of manufacture carried on by the lessee or any other process carried on by the lessee which is of a similar nature;
[Paragraph (b) substituted by section 20 of Act 31 of 2005, sectiion 32 of Act 31 of 2013 and section 20 of Act 25 of 2015 effective on 8 January 2016]
(bA) machinery or plant owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the definition of “instalment credit agreement” in section 1 of the Value-Added Tax Act and which was or is made available for use by the taxpayer in terms of a contract to another person for no consideration and was or is brought into use for the first time by that other person for the purposes of that other person’s trade (other than mining or farming) and is used by that other person solely for the benefit of that taxpayer for the purposes of the performance of that other person’s obligations under that contract in a process of manufacture under the Automotive Production and Development Programme administered by the Department of Trade, Industry and Competition or Automotive Investment Scheme administered by that Department;
[Paragraph (bA) inserted by section 20(1)(b) of Act 25 of 2015 and substituted by section 14 of Act 23 of 2020]
(c) machinery or plant (other than machinery or plant in respect of which an allowance has been granted to the taxpayer under paragraph (a)) owned by the taxpayer or acquired by the taxpayer as a purchaser in terms of an agreement contemplated in paragraph (a) of the definition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act and which was or is brought into use for the first time by any agricultural co-operative registered or deemed to be incorporated under the Co-operatives Act, 1981 (Act No. 91 of 1981), or registered under the Co-operatives Act, 2005 (Act No. 14 of 2005) and is used by it directly for storing or packing pastoral, agricultural or other farm products of its members (including any person who is a member of another agricultural co-operative which is itself a member of such agricultural co-operative) or for subjecting such products to a primary process as defined in section 27(9);
(d) machinery, implement, utensil or article (other than any machinery, implement, utensil or article in respect of which an allowance has been granted to the taxpayer under paragraph (e)) owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the definition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act and which was or is brought into use for the first time by the taxpayer for the purposes of the taxpayer’s trade as hotel keeper and is used by the taxpayer in a hotel, except any vehicle or equipment for offices or managers’ or servants’ rooms;
[Paragraph (d) substituted by section 20 of Act 31 of 2005, section 32 of Act 31 of 2013 and section 27 of Act 23 of 2018 effective on 17 January 2019]
(e) machinery, implement, utensil or article (other than any machinery, implement, utensil or article in respect of which an allowance has been granted to the taxpayer under paragraph (d)) owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the definition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act and which was or is let by the taxpayer and was or is brought into use for the first time by the lessee for the purposes of the lessee’s trade as hotel keeper and used by the lessee in a hotel, except any vehicle or equipment for offices or managers’ or servants’ rooms;
[Paragraph (e) substituted by section 20 of Act 31 of 2005, section 32 of Act 31 of 2013 and section 27 of Act 23 of 2018 effective on 17 January 2019]
(f) aircraft owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the definition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act and which was or is brought into use for the first time by the taxpayer for the purposes of his or her trade (other than an aircraft in respect of which an allowance has been granted to the taxpayer under section 12B);
(g) ship owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the definition of ‘instalment credit agreement in section 1 of the Value-Added Tax Act and which was or is brought into use for the first time by the taxpayer for the purposes of his or her trade (other than a South African ship contemplated in section 12Q(1));
(gA) new or unused machinery or plant, which is owned by a taxpayer, or acquired by a taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the definition of ‘instalment credit agreement in section 1 of the Value-Added Tax Act and is first brought into use by that taxpayer for purposes of research and development as defined in section 11D; or
(h) improvement (other than repairs) to any machinery, plant, implement, utensil or article referred to in paragraph (a), (b), (c), (d), (e) or (gA), which is during the year of assessment used as contemplated in that paragraph,
a deduction equal to 20 per cent of the cost to that taxpayer to acquire that machinery, plant, implement, utensil, article, ship, aircraft or improvement (hereinafter referred to as the asset) shall be allowed in the year of assessment during which the asset is so brought into use and in each of the four succeeding years of assessment: Provided that where –
(a) ……….
(b) ……….
(c) any new or unused machinery or plant referred to in paragraph (a) of this subsection or improvement referred to in paragraph (h) of this subsection, is or was –
(i) acquired by the taxpayer under an agreement formally and finally signed by every parry to the agreement on or after 1 March 2002; and
(ii) brought into use by the taxpayer on or after that date in a process of manufacture or process which is of a similar nature, carried on by that taxpayer in the course of its business (other than banking, financial services, insurance or rental business),
[Paragraph (c) added by section 15 of Act 30 of 2002, amended by section 30 of Act 45 of 2003 and section 20 of Act 31 of 2005 and substituted by section 20 of Act 25 of 2015 effective on 8 January 2016]
the deduction under this subsection shall be increased to 40 per cent of the cost to that taxpayer of that machinery, plant or improvement in respect of the year of assessment during which the plant, machinery or improvement was or is so brought into use for the first time and shall be 20 per cent in each of the three subsequent years of assessment;
(d) any new or unused machinery or plant referred to in paragraph (gA) of this subsection or improvement referred to in paragraph (h) of this subsection, is or was-
(i) acquired by the taxpayer under an agreement formally and finally signed by every party to the agreement on or after 1 January 2012; and
(ii) brought into use by the taxpayer on or after that date for the purpose of research and development as defined in section 11D,
the deduction under this subsection shall be-
(aa) increased to 50 per cent of the cost to that taxpayer of that machinery, plant or improvement in respect of the year of assessment during which the plant, machinery or improvement is or was so brought into use for the first time;
(bb) 30 per cent of that cost in the year of assessment immediately succeeding the year of assessment contemplated in item (aa); and
(cc) 20 per cent of that cost in the year of assessment immediately succeeding the year of assessment contemplated in item (bb)
: Provided further that where any machinery, plant, implement, utensil, article or improvement qualifying for an allowance under this section is mounted on or affixed to any concrete or other foundation or supporting structure and –
(a) the foundation or supporting structure is designed for such machinery, plant, implement, utensil, article or improvement and constructed in such manner that it is or should be regarded as being integrated with the machinery, plant, implement, utensil, article or improvement; and
(b) the useful life of the foundation or supporting structure is or will be limited to the useful life of the machinery, plant, implement, utensil, article or improvement mounted thereon or affixed thereto,
the foundation or supporting structure shall be deemed to be a part of the machinery, implement, utensil, article or improvement mounted thereon or affixed thereto.
(2) For purposes of this section the cost to a taxpayer of any asset shall be deemed to be the lesser of the actual cost to the taxpayer to acquire that asset or the cost which a person would, if he had acquired that asset under a cash transaction concluded at arm’s length on the date which the transaction for the acquisition of that asset was in fact concluded, have incurred in respect of the direct cost of acquisition of the asset, including the direct cost of the installation or erection thereof.
[Subsection (2) substituted by section 20 of Act 31 of 2005 and section 23 of Act 17 of 2017 effective on 18 December 2017]
(3) No deduction shall be allowed under this section in respect of –
(a) any asset which has been let by the taxpayer under a lease other than an operating lease as defined in section 23A(1), unless the lessee under such lease derives in the carrying on of his trade amounts constituting income for the purposes of this Act;
(b) ……….
(c) any asset which has been disposed of by the taxpayer during any previous year of assessment;
(d) any asset in respect of which an allowance has been granted to the taxpayer under section 12E; or
(e) any asset the ownership of which is retained by the taxpayer as a seller in terms of an agreement contemplated in paragraph (a) of the definition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act.
(4) ……….
(4A) Where any asset in respect of which any deduction is claimed in terms of this section was during any previous year of assessment used by the taxpayer for the purposes of any trade carried on by such taxpayer, the receipts and accruals of which were not included in the income of such taxpayer during such year, any deduction which could have been allowed in terms of this section during such previous year or any subsequent year that such asset was used by such taxpayer shall for the purposes of this section be deemed to have been allowed during such previous year or years as if the receipts and accruals of such trade had been included in the income of such taxpayer.
(5) The deductions which may be allowed or deemed to have been allowed in terms of this section and section 11(o) in respect of any asset shall not in the aggregate exceed the cost to the taxpayer of such asset.
(6) Any expenditure (other than expenditure referred to in section 11(a) incurred by a taxpayer during any year of assessment in moving an asset in respect of which a deduction was allowed or is allowable under this section or section 12B from one location to another shall –
(a) where the taxpayer is entitled to a deduction in respect of such asset under subsection (1) in that year and one or more succeeding years, be allowed to be deducted from his income in equal instalments in each year in which such a deduction is allowable; or
(b) in any other case, be allowed to be deducted from his income in that year.
Subsections 2, 3, 4, 5, 6, 7 and 8 of section 12H of ITA
(2)
(a) In addition to any deductions allowable in terms of this Act and subject to paragraph (b), where-
(i) during any year of assessment a learner who holds a qualification to which an NQF level from 1 up to and including 6 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008), is a party to a registered learnership agreement with an employer; and
(ii) that agreement was entered into pursuant to a trade carried on by that employer,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R40 000.
(b) Where a learner is a party to a registered learnership agreement as contemplated in paragraph (a) for a period of less than 12 full months during the year of assessment contemplated in paragraph (a), the amount that is allowed to be deducted in terms of that paragraph must be limited to an amount which bears to an amount of R40 000 the same ratio as the number of full months that the learner is a party to that agreement bears to 12.
(c) If a registered learnership agreement is registered as contemplated in paragraph (a) of the definition of ‘registered learnership agreement’ within a period of 12 months after the last day of the year of assessment contemplated in paragraph (a), the registered learnership agreement must be deemed to have been so registered on the date on which the registered learnership agreement was entered into as contemplated in paragraph (b) of that definition.
[Subsection (2) amended by section 27 of Act 22 of 2012, substituted by section 30 of Act 15 of 2016 effective on 1 October 2016, applies in respect of learnership agreements entered into on or after that date]
(2A)
(a) In addition to any deductions allowable in terms of this Act and subject to paragraph (b), where-
(i) during any year of assessment a learner who holds a qualification to which an NQF level from 7 up to and including 10 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008), is a party to a registered learnership agreement with an employer; and
(ii) that agreement was entered into pursuant to a trade carried on by that employer,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R20 000.
(b) Where a learner is a party to a registered learnership agreement as contemplated in paragraph (a) for a period of less than 12 full months during the year of assessment contemplated in paragraph (a), the amount that is allowed to be deducted in terms of that paragraph must be limited to an amount which bears to an amount of R20 000 the same ratio as the number of full months that the learner is a party to that agreement bears to 12.
(c) If a registered learnership agreement is registered as contemplated in paragraph (a) of the definition of ‘registered learnership agreement’ within a period of 12 months after the last day of the year of assessment contemplated in paragraph (a), the registered learnership agreement must be deemed to have been so registered on the date on which the registered learnership agreement was entered into as contemplated in paragraph (b) of that definition.
[Subsection (2A) inserted by section 30 of Act 15 of 2016 effective on 1 October 2016, applies in respect of learnership agreements entered into on or after that date]
(3) In addition to any deductions allowable in terms of this Act, where-
(a) during any year of assessment a learner who holds a qualification to which an NQF level from 1 up to and including 6 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008), is a party to a registered learnership agreement with an employer for a period of less than 24 full months;
(b) that agreement was entered into pursuant to a trade carried on by that employer; and
(c) that learner successfully completes that learnership during that year of assessment,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R40 000.
[Subsection (3) substituted by section 30 of Act 15 of 2016 effective on 1 October 2016, applies in respect of learnership agreements entered into on or after that date]
(3A) In addition to any deductions allowable in terms of this Act, where-
(a) during any year of assessment a learner who holds a qualification to which an NQF level from 7 up to and including 10 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008), is a party to a registered learnership agreement with an employer for a period of less than 24 full months;
(b) that agreement was entered into pursuant to a trade carried on by that employer; and
(c) that learner successfully completes that learnership during that year of assessment,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R20 000.
[Subsection (3A) inserted by section 30 of Act 15 of 2016 effective on 1 October 2016, applies in respect of learnership agreements entered into on or after that date]
(4) In addition to any deductions allowable in terms of this Act, where-
(a) during any year of assessment a learner who holds a qualification to which an NQF level from 1 up to and including 6 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008), to a registered learnership agreement with an employer for a period that equals or exceeds 24 full months;
(b) that agreement was entered into pursuant to a trade carried on by that employer; and
(c) that learner successfully completes that learnership during that year of assessment,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R40 000 multiplied by the number of consecutive 12 month periods within the duration of that agreement.
[Subsection (4) substituted by section 30 of Act 15 of 2016 effective on 1 October 2016, applies in respect of learnership agreements entered into on or after that date]
(4A) In addition to any deductions allowable in terms of this Act, where-
(a) during any year of assessment a learner is a party who holds a qualification to which an NQF level from 7 up to and including 10 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008), to a registered learnership agreement with an employer for a period that equals or exceeds 24 full months;
(b) that agreement was entered into pursuant to a trade carried on by that employer; and
(c) that learner successfully completes that learnership during that year of assessment,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R20 000 multiplied by the number of consecutive 12 month periods within the duration of that agreement.
[Subsection (4A) inserted by section 30 of Act 15 of 2016 effective on 1 October 2016, applies in respect of learnership agreements entered into on or after that date]
(5) Where a learner contemplated in subsection (2), (3) or (4) is a person with a disability (as defined in section 6B(1)) at the time of entering into the learnership agreement, the amounts contemplated in subsection (2), (3) or (4) must be increased by an amount of R20 000.
[Subsection (5) substituted by substituted by section 21 of Act 43 of 2014 and section 30 of Act 15 of 2016 effective on 1 October 2016, applies in respect of learnership agreements entered into on or after that date]
(5A) Where a learner contemplated in subsection (2A), (3A) or (4A) is a person with a disability (as defined in section 6B(1)) at the time of entering into the learnership agreement, the amounts contemplated in subsection (2A), (3A) or (4A) must be increased by an amount of R30 000.
[Subsection (5A) inserted by section 30 of Act 15 of 2016 effective on 1 October 2016, applies in respect of learnership agreements entered into on or after that date]
(6) This section does not apply in respect of any registered learnership agreement where-
(a) the learner that is the party to that agreement previously failed to complete any other registered learnership agreement to which the employer or an associated institution in relation to that employer was a party; and
(b) the registered learnership agreement contains the same education and training component as that other registered learnership agreement.
(7) Any SETA with which a learnership agreement has been registered as contemplated in the Skills Development Act, 1998, must submit to the Minister any information relating to that learnership agreement required by the Minister in the form and manner and at the place and time that the Minister prescribes.
(8) In respect of each year of assessment during which an employer is eligible for any deduction contemplated in this section, the employer must submit to the SETA with which the learnership agreement is registered any information relating to that learnership agreement required by the SETA in the form and manner and at the place and time indicated by the SETA.
Section 11(nB) of ITA
(nB) so much of any amount contemplated in paragraph (cA) or (cB) of the definition of ‘gross income’ received by or accrued to any person as is refunded by that person;
[Paragraph (nB) inserted by section 18 of Act 60 of 2008 and substituted by section 25 of Act 23 of 2018 effective on 17 January 2019]
Subsections 2, 2A, 3, 3A, 5, and 6 of section 12D of ITA
(2) There shall be allowed to be deducted an allowance in respect of the cost actually incurred by the taxpayer in respect of the acquisition of –
[Words preceding paragraph (a) substituted by section 19 of Act 43 of 2014 effective on 1 April 2015]
(a)
(i) any new and unused affected asset; or
(ii) in the case of an asset contemplated in paragraph (c) of the definition of ‘affected asset’ any asset,
owned by the taxpayer that is brought into use for the first time by the taxpayer; and;
[Paragraph (a) substituted by section 23 of Act 35 of 2007, section 12 of Act 3 of 2008 and section 19 of Act 43 of 2014 effective on1 April 2015]
(b) the asset as contemplated in paragraph (a) which is used directly by such taxpayer for purposes contemplated in the definition of ‘affected asset’,
[Paragraph (b) substituted by section 12 of Act 3 of 2008 and section 19 of Act 43 of 2014 effective on 1 April 2015]
(2A) For the purposes of this section, if a taxpayer completes an improvement as contemplated in section 12N, the expenditure incurred by the taxpayer to complete that improvement shall be deemed to be the cost actually incurred by the taxpayer in respect of the acquisition of any new and unused affected asset contemplated in subsection (2).
(3) The allowance contemplated in subsection (2) shall not for any one year exceed –
(a) 10 per cent of the cost incurred in respect of any asset contemplated in paragraph (a) of the definition of “affected asset”;
[Paragraph (a) amended by section 19 of Act 43 of 2014 effective on 1 April 2015]
(b) 5 per cent of the cost incurred in respect of any asset contemplated in paragraph (aA), (b) or (d) of the definition of affected asset; or
[Paragrpah (b) substituted by section 12 of Act 3 of 2008 and seciton 19 of Act 43 of 2014 effective on 1 April 2015]
(c) 10 per cent of the cost incurred in respect of any asset contemplated in paragraph (c) of the definition of ‘affected asset’.
[Paragraph (c) added by section 19 of Act 43 of 2014 and substituted by section 28 of Act 23 of 2018 effective on 1 April 2019, applies in respect of assets acquired on or after that date]
(3A) Where any affected asset in respect of which any deduction is claimed in terms of this section was during any previous year of assessment used by the taxpayer for the purposes of any trade carried on by such taxpayer, the receipts and accruals of which were not included in the income of such taxpayer during such year, any deduction which could have been allowed in terms of this section during such previous year or any subsequent year in which such asset was used by such taxpayer shall for the purposes of this section be deemed to have been allowed during such previous year or years as if the receipts and accruals of such trade had been included in the income of such taxpayer.
(4) For the purposes of this section the cost to a taxpayer of any affected asset shall be deemed to be the lesser of-
(a) the actual cost of the asset incurred by the taxpayer; or
(b) the cost which the taxpayer would, if the taxpayer had acquired or improved the said asset under a cash transaction concluded at arm’s length on the date on which the transaction for the acquisition or improvement of the said asset was in fact concluded, have incurred in respect of the direct cost of acquisition or improvement of the asset (including the direct cost of the installation or erection thereof).
[Subsection (4) amended by section 23 of Act 35 of 2007 and substituted by section 24 of Act 17 of 2017 effective on 18 December 2017]
(5) No deduction shall be allowed under this section in respect of any affected asset which has been disposed of by the taxpayer during any previous year of assessment.
(6) The deductions which may be allowed or deemed to have been allowed in terms of this section and any other provision of this Act in respect of the cost of any affected asset shall not in the aggregate exceed the amount of such cost.
“Associated institution” definition of section 12H of ITA
(1) For the purposes of this section –
‘associated institution’, in relation to any single employer, means-
(a) where the employer is a company, any other company which is associated with the employer company by reason of the fact that both companies are managed or controlled directly or indirectly by substantially the same persons;
(b) where the employer is not a company, any company which is managed or controlled directly or indirectly by the employer or by any partnership of which the employer is a member; or
(c) any fund established solely or mainly for providing benefits for employees or former employees of the employer or for employees or former employees of the employer and any company which is in terms of paragraph (a) or (b) an associated institution in relation to the employer, but excluding any fund established by a trade union or industrial council and any fund established for postgraduate research otherwise than out of moneys provided by the employer or by any associated institution in relation to the employer;
Section 12D (ITA) – Deduction in respect of certain pipelines, transmission lines and railway lines
12D. Deduction in respect of certain pipelines, transmission lines and railway lines
“Employer” definition of section 12H of ITA
‘employer’ means-
(a) where only one employer is party to a registered learnership agreement, that employer; or
(b) in the case where more than one employer is a party to a registered learnership agreement, the employer which is identified in that agreement as the lead employer;
Section 11(n) of ITA
(n) ……….
[Paragraph (n) amended by section 8 of Act 72 of 1963, substituted by section 12 of Act 55 of 1966 and section 9 of Act 76 of 1968, amended by section 9 of Act 65 of 1973 and section 9 of Act 69 of 1975, substituted by section 9 of Act 113 of 1977, amended by section 5 of Act 101 of 1978, section 8 of Act 104 of 1979, section 7 of Act 91 of 1982, section 10 of Act 94 of 1983, section 11 of Act 121 of 1984, section 8 of Act 90 of 1988, section 8 of Act 70 of 1989, section 11 of Act 101 of 1990, section 11 of Act 141 of 1992, section 9 of Act 113 of 1993, section 12 of Act 21 of 1995, section 20 of Act 53 of 1999, section 2 and section 11 of Act 8 of 2007, section 1 and section 10 of Act 3 of 2008, section 18 of Act 60 of 2008 and substituted by section 14 of Act 17 of 2009, amended by section 30 of Act 24 of 2011, deleted by section 27(1)(m) of Act 31 of 2013 effective on 1 March 2016, operation date specified in section 27(1)(m) of Act 31 of 2013 as substituted by section 122(1)(b) of Act 43 of 2014]