Category: Section 11 (ITA) – General deductions allowed in determination of taxable income

Section 11

 

  1. Paragraph (a) substituted by section 15 of Act 59 of 2000.

 

  1. Paragraph (b) substituted by section 13 of Act 129 of 1991 and deleted by section 15 of Act 59 of 2000.

 

  1. Paragraph (bA) inserted by section 9 of Act 96 of 1981, substituted by section 11 of Act 19 of 2001 and deleted by section 30 of Act 24 of 2011 effective on 1 January 2012.

 

  1. Paragraph (bB) inserted by section 11 of Act 121 of 1984, amended by section 8 of Act 90 of 1988, section 8 of Act 70 of 1989 and section 12 of Act 21 of 1995 and deleted by section 14 of Act 17 of 2009.

 

  1. Paragraph (bC) inserted by section 27 of Act 45 of 2003 and deleted by section 16 of Act 32 of 2004.

 

  1. Subparagraph (c)(ii) substituted by section 18 of Act 60 of 2008.

 

  1. Paragraph (c) substituted by section 10 of Act 88 of 1971.

 

  1. Subparagraph (cA)(iv) substituted by section 18 of Act 60 of 2008 effective on1 March 2009.

 

  1. Paragraph (cA) inserted by section 22 of Act 30 of 2000.

 

  1. Words preceding the proviso of subparagraph (e)(i) substituted by section 10 of Act 3 of 2008, section 19 of Act 7 of 2010 and section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (e)(i) deleted by section 19 of Act 7 of 2010.

 

  1. Paragraph (e)(iA) inserted by section 18 of Act 31 of 2005 and substituted by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (e)(iiA) inserted by section 12 of Act 85 of 1974 and substituted by section 22 of Act 22 of 2012 effective on 1 January 2013.

 

  1. Subparagraph (e)(iii) substituted by section 12 of Act 55 of 1966 and section 10 of Act 21 of 1994.

 

  1. Subparagraph (e)(iiiA) inserted by section 9 of Act 96 of 1981.

 

  1. Subparagraph (e)(iv) substituted by section 9 of Act 113 of 1977 and deleted by section 19 of Act 7 of 2010.

 

  1. Subparagraph (e)(vi) substituted by section 12 of Act 55 of 1966, section 9 of Act 113 of 1977 and section 11 of Act 121 of 1984 and deleted by section 11 of Act 8 of 2007.

 

  1. Subparagraph (e)(vii) added by section 11 of Act 121 of 1984 and amended by section 19 of Act 7 of 2010.

 

  1. Subparagraph (e)(viii) added by section 9 of Act 113 of 1993, substituted by section 5 of Act 140 of 1993, section 6 of Act 9 of 2005 and section 11 of Act 8 of 2007 and deleted by section 17 of Act 35 of 2007.

 

  1. Subparagraph (e)(ix) added by section 15 of Act 59 of 2000 and substituted by section 18 of Act 60 of 2008.

 

  1. Paragraph (e) amended by section 9 of Act 90 of 1962 and section 9 of Act 90 of 1964, substituted by section 11 of Act 88 of 1965 and amended by section 8 of Act 90 of 1988, section 11 of Act 101 of 1990, section 15 of Act 59 of 2000, section 6 of Act 9 of 2005 and section 18 of Act 31 of 2005.

 

  1. Subparagraph (f)(ii)bis inserted by section 9 of Act 90 of 1962.

 

  1. Subparagraph (f)(iii) substituted by section 14 of Act 89 of 1969, section 13 of Act 129 of 1991, section 20 of Act 53 of 1999 and section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (f)(iv) amended by section 9 of Act 90 of 1962 and section 14 of Act 17 of 2009.

 

  1. Subparagraph (f)(v) added by section 14 of Act 17 of 2009.

 

  1. Item (f)(v)(aa) amended by section 9 of Act 90 of 1962 and section 14 of Act 17 of 2009.

 

  1. Item (f)(v)(bb) substituted by section 10 of Act 94 of 1983.

 

  1. Item (f)(v)(cc) amended by section 9 of Act 90 of 1962.

 

  1. Item (f)(v)(dd) added by section 11 of Act 121 of 1984 and substituted by section 14 of Act 17 of 2009.

 

  1. Subparagraph (g)(ii) substituted by section 10 of Act 94 of 1983.

 

  1. Subparagraph (g)(iii) substituted by section 19 of Act 7 of 2010 effective on 2 November 2010.

 

  1. Subparagraph (g)(iv) added by section 9 of Act 90 of 1962 and substituted by section 9 of Act 113 of 1977 and section 14 of Act 17 of 2009.

 

  1. Subparagraph (g)(v) added by section 7 of Act 91 of 1982 and deleted by section 19 of Act 7 of 2010 effective on 2 November 2010.

 

  1. Subparagraph (g)(vi) added by section 10 of Act 94 of 1983 and substituted by section 16 of Act 32 of 2004, section 14 of Act 17 of 2009 and section 19 of Act 7 of 2010 effective on 2 November 2010.

 

  1. Subparagraph (g)(vii) added by section 16 of Act 32 of 2004 and substituted by section 19 of Act 7 of 2010.

 

  1. Subparagraph (gA)(i) substituted by section 13 of Act 129 of 1991, section 20 of Act 53 of 1999 and section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (gA)(ii) substituted by section 20 of Act 53 of 1999, section 15 of Act 59 of 2000 and section 27 of Act 31 of 2013 effective on 12 December.

 

  1. Subparagraph (gA)(iii) substituted by section 9 of Act 113 of 1993 and section 11 of Act 8 of 2007.

 

  1. Subitem (gA)(iii)(aa)(AA) substituted by section 11 of Act 8 of 2007.

 

  1. Subitem (gA)(iii)(aa)(BB) substituted by section 11 of Act 8 of 2007.

 

  1. Item (aa) amended by section 9 of Act 36 of 1996, substituted by section 20 of Act 53 of 1999 and amended by section 14 of Act 30 of 2002.

 

  1. Item (gA)(iii)(bb) substituted by section 10 of Act 94 of 1983.

 

  1. Subitem (gA)(iii)(cc)(A) substituted by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subitem (gA)(iii)(cc)(B) substituted by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Item (gA)(iii)(cc) added by section 8 of Act 90 of 1988 and amended by section 9 of Act 113 of 1993 and section 15 of Act 59 of 2000.

 

  1. Item (gA)(iii)(dd) added by section 9 of Act 113 of 1993 and substituted by section 5 of Act 140 of 1993 and section 15 of Act 59 of 2000.

 

  1. Item (gA)(iii)(ee) added by section 20 of Act 53 of 1999 and substituted by section 11 of Act 8 of 2007.

 

  1. Item (gA)(iii)(ff) added by section 27 of Act 45 of 2003.

 

  1. Paragraph (gA) inserted by section 12 of Act 55 of 1966, substituted by section 14 of Act 89 of 1969 and amended by section 10 of Act 94 of 1983, section 15 of Act 59 of 2000 and section 11 of Act 8 of 2007.

 

  1. Paragraph (gB) inserted by section 12 of Act 55 of 1966, amended by section 14 of Act 89 of 1969, substituted by section 13 of Act 129 of 1991, section 20 of Act 53 of 1999 and section 15 of Act 59 of 2000, amended by section 27 of Act 45 of 2003 and substituted by section 11 of Act 20 of 2006, section 11 of Act 8 of 2007, section 17 of Act 35 of 2007 and by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (gC)(i) substituted by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (gC)(ii) substituted by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (gC)(iii) substituted by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (gC)(iv) substituted by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (gC)(v) substituted by section 11 of Act 8 of 2007.

 

  1. Subparagraph (gC)(v)(aa)(A) substituted by section 11 of Act 8 of 2007.

 

  1. Subparagraph (gC)(v)(aa)(B) substituted by section 11 of Act 8 of 2007.

 

  1. Paragraph (gC)(v)(aa) substituted by section 16 of Act 32 of 2004 and amended by section 2 of Act 8 of 2007and section 1 of Act 3 of 2008.

 

  1. Paragraph (gC)(v)(bb) substituted by section 16 of Act 32 of 2004 and deleted by section 17 of Act 35 of 2007.

 

  1. Paragraph (gC) inserted by section 9 of Act 113 of 1977, deleted by section 15 of Act 59 of 2000, inserted by section 27 of Act 45 of 2003 and amended by section 16 of Act 32 of 2004 and section 11 of Act 8 of 2007.

 

  1. Paragraph (gD) inserted by section 18 of Act 60 of 2008 effective on 1 January 2008 and substituted by section 19 of Act 7 of 2010 and section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (h)(i) substituted by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Subparagraph (h)(i) substituted by section 27 of Act 31 of 2013 effective on 12 December 2013.

 

  1. Paragraph (h) substituted by section 8 of Act 90 of 1972 and amended by section 10 of Act 94 of 1983.

 

  1. Paragraph (hA) inserted by section 13 of Act 129 of 1991, substituted by section 12 of Act 28 of 1997, section 27 of Act 45 of 2003, and section 11 of Act 20 of 2006, amended by section 11 of Act 8 of 2007 and deleted by section 30 of Act 24 of 2011 effective on 1 January 2012.

 

  1. Paragraph (hB) inserted by section 11 of Act 20 of 2006.

 

  1. Paragraph (i) substituted by section 14 of Act 89 of 1969, section 10 of Act 94 of 1983, section 9 of Act 113 of 1993 and section22 of Act 22 of 2012 effective on 1 January 2013.

 

  1. Paragraph (j) substituted by section 14 of Act 89 of 1969, amended by section 10 of Act 94 of 1983 and section 18 of Act 31 of 2005 and substituted by section22 of Act 22 of 2012 effective on 1 January 2013.

 

  1. Subparagraph (k)(i) substituted by section 5 of Act 101 of 1978, amended by section 8 of Act 104 of 1979 and section 9 of Act 96 of 1981, substituted by section 10 of Act 94 of 1983, amended by section 30 of Act 30 of 1998, section 2 of Act 8 of 2007 and section 1 of Act 3 of 2008 and substituted by section 10 of Act 3 of 2008.

 

  1. Item (k)(ii)(aa) amended by section 11 of Act 121 of 1984, substituted by section 18 of Act 31 of 2005 and amended by section 2 of Act 8 of 2007 and section 1 of Act 3 of 2008.

 

  1. Item (k)(ii)(bb) added by section 9 of Act 96 of 1981.

 

  1. Item (k)(ii)(cc) added by section 10 of Act 94 of 1983.

 

  1. Item (k)(ii)(dd) added by section 10 of Act 94 of 1983 and substituted by section 14 of Act 17 of 2009 and section 27 of Act 31 of 2013 effective on 1 March 2013.

 

  1. Paragraph (k) amended by section 8 of Act 72 of 1963 and substituted by section 12 of Act 55 of 1966, section 9 of Act 65 of 1973, section 9 of Act 69 of 1975 and section 9 of Act 113 of 1977 and amended by section 9 of Act 96 of 1981.

 

  1. Subparagraph (l)(v) substituted by section 10 of Act 94 of 1983 and section 10 of Act 3 of 2008.

 

  1. Subparagraph (l)(vi) of the proviso deleted by section 271 of Act 28 of 2011 effective on 1 October 2012.

 

  1. Paragraph (l) substituted by section 8 of Act 104 of 1979 and amended by section 30 of Act 30 of 1998.

 

  1. Paragraph (lA) inserted by section 16 of Act 32 of 2004 and amended by section 18 of Act 31 of 2005, ssection 2 and 11 of Act 8 of 2007, section 1 of Act 3 of 2008 and section 18 of Act 60 of 2008 effective on 21 February 2008.

 

  1. Subparagraph (m)(ii) substituted by section 9 of Act 113 of 1993.

 

  1. Paragraph (m) substituted by section 14 of Act 89 of 1969 and section 5 of Act 101 of 1978 and amended by section 9 of Act 96 of 1981, section 11 of Act 121 of 1984 and section 11 of Act 8 of 2007.

 

  1. Subitem (n)(i)(aa)(A) substituted by section 30 of Act 24 of 2011 effective on 1 March 2011.

 

  1. Paragraph (cc) of the proviso to subpar. (n)(i) substituted by section 22 of Act 22 of 2012 effective on 1 March 2014 – comes into operation in terms of section 22 of Act 22 of 2012 as substituted by section 195 of Act 31 of 2013.

 

  1. 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 effective on 1 March 2009 to the extent that it amends references to the Second Schedule and effective on 1 March 2010 in any other case..

 

  1. Paragraph (nA) inserted by section 18 of Act 60 of 2008.

 

  1. Paragraph (nB) inserted by section 18 of Act 60 of 2008.

 

  1. Subparagraph (o)(i) substituted by section 11 of Act 8 of 2007 and section 17 of Act 35 of 2007.

 

  1. Paragraph (o)(ii)(aa) substituted by section 9 of Act 16 of 2004.

 

  1. Paragraph (o)(ii)(bb) substituted by section 9 of Act 16 of 2004.

 

  1. Paragraph (o)(ii)(dd) amended by section 17 of Act 35 of 2007.

 

  1. Further Proviso to paragraph (o) added by section 17 of Act 35 of 2007.

 

  1. Paragraph (o) substituted by section 11 of Act 88 of 1965, section 12 of Act 55 of 1966 and section 14 of Act 89 of 1969, amended by section 12 of Act 85 of 1974, section 9 of Act 113 of 1977, section 9 of Act 96 of 1981, section 7 of Act 91 of 1982, section 10 of Act 94 of 1983, section 11 of Act 121 of 1984, section 10 of Act 85 of 1987, section 8 of Act 90 of 1988, section 11 of Act 101 of 1990, section 10 of Act 21 of 1994, section 22 of Act 30 of 2000, section 15 of Act 59 of 2000, section 10 of Act 19 of 2001 and section 27 of Act 60 of 2001, substituted by section 27 of Act 45 of 2003 and amended by section 18 of Act 31 of 2005 and section 17 of Act 35 of 2007.

 

  1. Paragraph (p) amended by section 8 of Act 90 of 1988 and section 27 of Act 45 of 2003 and deleted by section 18 of Act 60 of 2008.

 

  1. Paragraph (q) amended by section 10 of Act 94 of 1983, section 9 of Act 113 of 1993 and section 27 of Act 45 of 2003 and deleted by section 18 of Act 60 of 2008.

 

  1. Paragraph (r) amended by section 9 of Act 90 of 1962 and section 8 of Act 72 of 1963, substituted by section 11 of Act 95 of 1967, deleted by section 10 of Act 89 of 1969, inserted by section 27 of Act 45 of 2003 and deleted by section 16 of Act 32 of 2004.

 

  1. Paragraph (r)bis inserted by section 9 of Act 90 of 1964 and deleted by section 11 of Act 95 of 1967.

 

  1. Paragraph (s) substituted by section 14 of Act 89 of 1969, section 12 of Act 28 of 1997 and section 19 of Act 74 of 2002 and deleted by section 22 of Act 22 of 2012 effective on 1 April 2013.

 

  1. Paragraph (t) amended by section 8 of Act 72 of 1963, substituted by section 9 of Act 76 of 1968, amended by section 8 of Act 90 of 1972, section 12 of Act 85 of 1974, section 9 of Act 69 of 1975, section 9 of Act 113 of 1977, section 8 of Act 104 of 1980, section 7 of Act 91 of 1982, section 10 of Act 94 of 1983, section 2 of Act 8 of 2007 and section 1 of Act 3 of 2008 and deleted by section 18 of Act 60 of 2008 effective on 21 Oct 2008.

 

  1. Paragraph (u) substituted by section 10 of Act 88 of 1971 and section 11 of Act 121 of 1984, amended by section 9 of Act 113 of 1993 and section 14 of Act 30 of 2002 and deleted by section 9 of Act 16 of 2004 effective on 1 January 2005.

 

  1. Paragraph (uA) inserted by section 11 of Act 121 of 1984 and deleted by section 10 of Act 21 of 1994.

 

  1. Paragraph (v) substituted by section 12 of Act 55 of 1966 and section 10 of Act 88 of 1971 and deleted by section 9 of Act 65 of 1973.

 

  1. Words preceding subparagraph (w)(i) substituted by section 22 of act 22 of 2012 effective on 1 March 2012.
  3. Paragraph (w) substituted by section 14 of Act 89 of 1969 and section 10 of Act 89 of 1969, amended by section 10 of Act 88 of 1971, section 7 of Act 91 of 1982, section 10 of Act 94 of 1983, section 46 of Act 97 of 1986, section 22 of Act 30 of 2000 and section 19 of Act 74 of 2002, substituted by section 19 of Act 7 of 2010 effective on 1 January 2011 (amendment was deleted by section 161 of Act 24 of 2011 effective on 1 January 2011) and substituted by section 30 of Act 24 of 2011 effective on 1 March 2012.

Section 11(m) of ITA

Posted on by admin_kmos

(m)    any amount paid by way of annuity during the year of assessment by any taxpayer –

 

(i)      to a former employee who has retired from the taxpayer’s employ on grounds of old age, ill health or infirmity; or

  

(ii)     to a person who was for a period of at least five years a partner in an undertaking carried on by the taxpayer and who retired from the partnership in respect of that undertaking on grounds of old age, ill health or infirmity, provided that the amount so paid to such person is reasonable, having regard to the services rendered by such person as a partner in such undertaking prior to his retirement and the profits made in such undertaking, and that the said amount does not represent consideration payable to such person in respect of his interest in the partnership; or

 

(iii)    to any person who is dependent for his maintenance upon a former employee or a former partner in an undertaking carried on by the taxpayer or (where such former employee or former partner is deceased) was so dependent immediately prior to his death;

Section 11(n) of ITA

Posted on by admin_kmos

(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]

Section 11(o) of ITA

Posted on by admin_kmos

(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 11(w) of ITA

Posted on by admin_kmos

(w)    expenditure incurred by a taxpayer in respect of any premiums payable under a policy of insurance (other than a policy of insurance that relates to the death, disablement or illness of an employee or director of the taxpayer arising solely out of and in the course of employment of such employee or director) of which the taxpayer is the policyholder, where-

[Words preceding subparagraph (i) substituted by section 22 of Act 22 of 2012 and section 19 of Act 17 of 2017 effective on 18 December 2017]

(i)

(aa)   the policy relates to the death, disablement or illness of an employee or director of the taxpayer; and

[Item (aa) substituted by section 19 of Act 17 of 2017 effective on 18 December 2017]

(bb)   the amount of expenditure incurred by the taxpayer in respect of the premiums payable under the policy is deemed to be a taxable benefit granted to an employee or director of the taxpayer in terms of paragraph 2(k) of the Seventh Schedule; or

(ii)

(aa)   the taxpayer is insured against any loss by reason of the death, disablement or illness of an employee or director of the taxpayer;

[Item (aa) substituted by section 19 of Act 17 of 2017 effective on 18 December 2017]

(bb)   the policy is a risk policy with no cash value or surrender value;

(cc)    the policy is not the property of any person other than the taxpayer at the time of the payment of the premium;

 [Paragraph (cc) substituted by section 17 of Act 43 of 2014 effective on 1 March 2015]

(dd)   in respect of any policy entered into-

(A)    on or after 1 March 2012, the policy agreement states that this paragraph applies in respect of premiums payable under that policy; or

(B)     before 1 March 2012, it is stated in an addendum to the policy agreement by no later than 31 August 2012 that this paragraph applies in respect of premiums payable under that policy;