11G.  Deduction of expenses incurred in production of interest

 

(1)     For purposes of this section “interest” means interest as defined in section 24J.

 

(2)     Notwithstanding section 23(b), for purposes of determining the taxable income derived by any person, there shall be allowed as a deduction from the income of that person, interest incurred by that person to the extent that the interest-

 

(a)     is incurred in the production of interest that is included in the income of that person; and

 

(b)     is not incurred in carrying on a trade.

[Subsection (2) amended by section 13(1) of Act 5 of 2026 effective on 1 January, 2026 and applicable to years of assessment commencing on or after that date]

 

(3)     The amount allowed to be deducted under this section shall not exceed the amount of interest income referred to in subsection (2)(a), that is received by or accrued to the person, during the year of assessment.

[Section 11G inserted by section 14(1) of Act 17 of 2023 effective on 1 January, 2026 and applicable in respect of years of assessment commencing on or after that date (effective date in section 14(2) of Act 17 of 2023 as substituted by section 67(1) of Act 42 of 2024)]