(g) any moneys, claimed as a deduction from income derived from trade, to the extent to which such moneys were not laid out or expended for the purposes of trade;
Category: PART I – Normal Tax (ITA)
Section 22A (ITA) – Schemes of arrangement involving trading stock
22A. Schemes of arrangement involving trading stock
(1) If, under any scheme of arrangement or reconstruction of any company or its affairs (including any scheme for the amalgamation of two or more companies and any other scheme) which is sanctioned by any order of court on or after the first day of April, 1971, any company (hereinafter referred to as the transferee company) has before 1 October 2001, acquired from any other company (hereinafter referred to as the transferor company) any asset which was trading stock of the transferor company, and in respect of such acquisition –
(a) no consideration measurable in terms of money accrued from the transferee company to the transferor company; or
(b) a consideration accrued from the transferee company to the transferor company the money value of which was less than the market value of such asset on the date on which the transferee company acquired such asset,
such asset shall for the purposes of this Act be deemed to be trading stock of the transferee company, and, where paragraph (a) is applicable –
(i) the transferee company shall be deemed to have acquired such asset at a price equal to the cost price thereof to the transferor company; and
(ii) notwithstanding the provisions of section 22(2), no deduction shall, in the determination of the taxable income of the transferor company for the year of assessment of that company during which the transferee company acquired such asset, be made in respect of the value of such asset as trading stock.
(2) Any amount which is received by or accrues to the transferee company from the disposal of the said asset (or of any interest therein) shall be included in that company’s income, whether such amount is derived in carrying on any trade or otherwise or is derived from a source within or outside the Republic.
Section 23(h) of ITA
(h) interest which might have been made on any capital employed in trade;
Section 22B (ITA) – Dividends treated as income on disposal of certain shares
22B. Dividends treated as income on disposal of certain shares
(1) For the purposes of this section-
Section 23(i) of ITA
(i) any expenditure, loss or allowance to the extent to which it is claimed as a deduction from any retirement fund lump sum benefit or retirement fund lump sum withdrawal benefit;
(j) ……….
Section 23(k) of ITA
(k) any expense incurred by-
(i) a labour broker as defined in the Fourth Schedule, other than a labour broker in respect of which a certificate of exemption has been issued in terms of paragraph 2(5) of the said Schedule; or
(ii) a personal service provider as defined in the said Schedule,
other than any expense which constitutes an amount paid or payable to any employee of such labour broker or personal service provider for services rendered by such employee, which is or will be taken into account in the determination of the taxable income of such employee and, in the case of such personal service provider, any expense, deduction or contribution contemplated in paragraphs (c), (i), (l), (nA) or (nB) of section 11, expenses in respect of premises, finance charges, insurance, repairs and fuel and maintenance in respect of assets, if such premises or assets are used wholly and exclusively for purposes of trade;
Section 23(l) of ITA
(l) any expense incurred in respect of the payment of any restraint of trade, except as provided for in section 11(cA).
Section 23(m) of ITA
(m) subject to paragraph (k), an expenditure, loss or allowance, contemplated in section 11, which relates to any employment of, or office held by, any person (other than an agent or representative whose remuneration is normally derived mainly in the form of commissions based on his or her sales or the turnover attributable to him or her) in respect of which he or she derives any remuneration, as defined in paragraph 1 of the Fourth Schedule, other than –
(i) any contributions to a pension fund, provident fund or retirement annuity fund as may be deducted from the income of that person in terms of section 11F;
[Subparagraph (i) substituted by section 56 of Act 31 of 2013 and section 35 of Act 17 of 2017 effective on 1 March 2016]
(ii) any allowance or expense which may be deducted from the income of that person in terms of section 11(c), (e), (i) or (j);
(iiA) any deduction which is allowable under section 11(nA) or (nB);
[Subparagraph (iiA) inserted by section 37(1)(c) of Act 60 of 2008 and amended by section 56(1)(b) of Act 31 of 2013 and by section 20(a) of Act 5 of 2026]
(iii) . . . . . .
[Subparagraph (iii) amended by section 38(1)(a) of Act 45 of 2003, substituted by section 28(1)(b) of Act 31 of 2005 and deleted by section 56(1)(c) of Act 31 of 2013 effective on 1 March, 2015 and applicable in respect of premiums paid on or after that date]
(iv) any deduction which is allowable under section 11(a) or (d) in respect of any rent of, cost of repairs of or expenses in connection with any dwelling house or domestic premises, to the extent that the deduction is not prohibited under paragraph (b); and
[Subparagraph (iv) added by section 28(1)(c) of Act 31 of 2005 and amended by section 20(b) of Act 5 of 2026]
(v) any deduction which is allowable under section 6quat(1C);
[Paragraph (m) added by section 21(1)(b) of Act 30 of 2002 deemed effective on 1 March, 2002. Subparagraph (v) added by section 20(c) of Act 5 of 2026]
Section 23(n) of ITA
(n) any deduction or allowance in respect of any asset or expenditure to the extent that amount –
(i) is granted or paid to the taxpayer and is exempt from tax in terms of section 10(1)(yA); and
(ii) is so granted or paid for purposes of the acquisition of that asset or funding of that expenditure: Provided that the provisions of this paragraph shall not apply if the grant or payment is in respect of programmes or schemes that the Minister has identified by notice in the Gazette for purposes of this paragraph;
Section 23(o) of ITA
(o) any expenditure incurred –
(i) where the payment of that expenditure or the agreement or offer to make that payment constitutes an activity contemplated in Chapter 2 of the Prevention and Combating of Corrupt Activities Act. 2004 (Act No. 12 of 2004);
[Subparagraph (i) amended by section 39 of Act 23 of 2018 effective on 1 April 2019, applies in respect of years of assessment commencing on or after that date]
(ii) which constitutes a fine charged or penalty imposed as a result of an unlawful activity carried out in the Republic or in any other country if that activity would be unlawful had it been carried out in the Republic; or
[Subparagraph (ii) amended by section 39 of Act 23 of 2018 effective on 1 April 2019 and applies in respect of years of assessment commencing on or after that date]
(iii) which constitutes fruitless and wasteful expenditure as defined in section 1 of the Public Finance Management Act and determined in accordance with that Act;
[Subparagraph (iii) added by section 39(1) of Act 23 of 2018 and substituted by section 11 of Act 20 of 2022]
[Paragraph (o) added by section 28(1)(e) of Act 31 of 2005 and amended by section 47(1)(a) of Act 24 of 2011 effective on 1 March, 2012 and applicable in respect of policies ceded on or after that date]