Page 121 - SAIT Compendium 2016 Volume1

s 11 INCOME TAX ACT 58 OF 1962
by the taxpayer during any year of assessment
commencing on or after 1 January 2004;
[Para. (ff) added by s. 27 (1) (b) of Act 45 of 2003.]
[Para. (gA) inserted by s. 12 (1) (c) of Act 55 of 1966, substituted by s. 14 (1) (b) of Act 89 of 1969 and amended by s. 10 (1) (d) of Act 94 of 1983 and by s. 11 (1) (d) of Act 8 of 2007.]
(gB)expenditure (other than expenditure which has quali ed in whole or part for deduction or allowance under any of the other provisions of this section) actually incurred by the taxpayer during the year of assessment in obtaining the grant of any patent or the restoration of any patent, or the extension of the term of any patent under the Patents Act or the registration of any design, or extension of the registration period of any design under the Designs Act or the registration of any trade mark, or the renewal of the registration of any trade mark under the Trade Marks Act or under similar laws of any other country, if such patent, design or trade mark is used by the taxpayer in the production of his or her income;
[Para. (gB) inserted by s. 12 (1) (c) of Act 55 of 1966, amended by s. 14 (1) (c) of Act 89 of 1969, substituted by s. 13 (d) of Act 129 of 1991, by s. 20 (e) of Act 53 of 1999 and by s. 15 (g) of Act 59 of 2000, amended by s. 27 (1) (c) of Act 45 of 2003 and substituted by s. 11 (1) (a) of Act 20 of 2006, by s. 11 (1) (g) of Act 8 of 2007, by s. 17 (1) (b) of Act 35 of 2007 and by s. 27 (1) (f) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(gC)an allowance in respect of any expenditure actually incurred by the taxpayer during any year of assessment commencing on or after 1 January 2004 to acquire (otherwise than by way of devising, developing or creating) any—
(i) invention or patent as de ned in the Patents Act;
[Sub-para. (i) substituted by s. 27 (1) (g) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(ii) design as de ned in the Designs Act;
[Sub-para. (ii) substituted by s. 27 (1) (g) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(iii) copyright as de ned in the Copyright Act;
[Sub-para. (iii) substituted by s. 27 (1) (g) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(iv) other property which is of a similar nature (other than trade marks as de ned in the Trade Marks Act); or
[Sub-para. (iv) substituted by s. 27 (1) (g) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(v) knowledge essential to the use of such patent, design, copyright or other property or the right to have such knowledge imparted,
[Sub-para. (v) substituted by s. 10 (1) (h) of Act 8 of 2007.] which shall be allowed during the year of assessment in which that invention, patent, design, copyright, other property or knowledge is brought into use for the rst time by the taxpayer for the purposes of the taxpayer’s trade, if that invention, patent, design, copyright, other property or knowledge, as the case may be, is used by the taxpayer in the production of his or her income: Provided that—
(aa) where that expenditure actually incurred by the taxpayer exceeds R5 000, that allowance shall not exceed in any year of assessment—
[Para. (aa) amended by s. 2 (2) (b) of Act 8 of 2007 and by s. 1 (2) (c) of Act 3 of 2008.]
(A) ve per cent of the amount of the expenditure in respect of any invention, patent, copyright or other property of a similar nature or any knowledge essential to
s 11
the use of such invention, patent, copyright or other property or the right to have such knowledge imparted; or
[Sub-para. (A) substituted by s. 11 (1) (j) of Act 8 of 2007.] (B) 10 per cent of the amount of the expenditure in respect of any design or other property of a similar nature or any knowledge essential to the use of such design or other property or
the right to have such knowledge imparted;
[Sub-para. (B) substituted by s. 11 (1) (j) of Act 8 of 2007.] [Para. (aa) substituted by s. 16 (1) (e) of Act 32 of 2004.]
(bb) . . .
[Para. (bb) substituted by s. 16 (1) (e) of Act 32 of 2004
and deleted by s. 17 (c) of Act 35 of 2007.]
[Para. (gC) inserted by s. 9 (1) (d) of Act 113 of 1977, deleted by s. 15 (h) of Act 59 of 2000, inserted by s. 27 (1) (d) of Act 45 of 2003 and amended by s. 16 (1) (d) of Act 32 of 2004 and by s. 11 (1) (i) of Act 8 of 2007.]
(gD)where that trade constitutes the provision of telecommunication services, the exploration, production or distribution of petroleum or the provision of gambling facilities, any expenditure (other than in respect of infrastructure) incurred to acquire a licence from the government of the Republic in the national, provincial or local sphere, contemplated in section 10 (1) (a), or an institution or entity contemplated in Schedule 1 or Part A or C of Schedule 3 to the Public Finance Management Act, where that expenditure is incurred in terms of the licence and the licence is required to carry on that trade, which deduction must not exceed for any one year such portion of the expenditure as is equal to the amount of the expenditure divided by the number of years for which the taxpayer has the right to the licence after the date on which the expenditure was incurred, or 30, whichever is the lesser;
[Para. (gD) inserted by s. 18 (1) (d) of Act 60 of 2008, substituted by s. 19 (1) (h) of Act 7 of 2010 and substituted by s. 27 (1) (h) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(h)
such allowance in respect of amounts included in the taxpayer’s gross income under paragraph (g) or paragraph (h) of the de nition of ‘gross income’ in section 1 as the Commissioner may deem reasonable having regard to any special circumstances of the case and, in the case of an amount so included under the said paragraph (h), to the original period for which the right of use or occupation was granted or, in the case of any amount so included under the said paragraph (h) in consequence of an agreement concluded on or after 1 July 1983, to the number of years taken into account in the determination of the relevant allowance granted to any other person under the provisions of paragraph (g) of this section: Provided that where there has on or after the twenty- ninth day of March, 1972, accrued to the taxpayer the right to have improvements effected on land or to buildings by any other person and an amount is required to be included in the taxpayer’s gross income under the said paragraph (h) with respect to such improvements, no allowance shall be made to the taxpayer under this paragraph in respect of such amount, if—
(i) the taxpayer or such other person is a company and such other person or the taxpayer, as the case may be, is interested in more than 50 per cent of any class of shares issued by such company, whether directly as a holder of shares in that
SAIT CompendIum oF TAx LegISLATIon VoLume 1
113
INCOME TAX ACT – SECTIONS