Page 132 - SAIT Compendium 2016 Volume1

s 11sept INCOME TAX ACT 58 OF 1962 s 12B
(1) of Act 96 of 1985 and by s. 12 of Act 101 of 1990 and repealed by s. 15 of Act 129 of 1991.]
11oct . . .
[S. 11oct inserted by s. 10 (1) of Act 91 of 1982 and
repealed by s. 21 (1) of Act 53 of 1999.]
12 . . .
[S. 12 amended by s. 11 of Act 90 of 1962, by s. 4 of Act 6 of 1963 and by s. 10 (1) of Act 72 of 1963, substituted by s. 11 (1) of Act 90 of 1964, amended by s. 13 (1) of Act 88 of 1965, substituted by s. 15 (1) of Act 55 of 1966, amended by s. 12 (1) of Act 52 of 1970, by s. 11 (1) of Act 88 of 1971, by s. 11 of Act 90 of 1972, by s. 12 (1) of Act 65 of 1973, by s. 15 (1) of Act 85 of 1974, by s. 11 (1) of Act 69 of 1975, by s. 13 of Act 113 of 1977, by s. 6 (1) of Act 101 of 1978, by s. 10 of Act 104 of 1979, by s. 9 of Act 104 of 1980, by s. 12 (1) of Act 96 of 1981, by s. 11 (1) of Act 91 of 1982, by s. 14 (1) of Act 121 of 1984, by s. 9 (1) of Act 96 of 1985, by s. 8 (1) of Act 65 of 1986 and by s. 11 of Act 85 of 1987 and repealed by s. 16 of Act 129 of 1991.]
12A . . .
[S. 12A inserted by s. 16 of Act 55 of 1966, amended by s. 13 (1) of Act 95 of 1967, by s. 12 (1) of Act 88 of 1971, by s. 12 of Act 69 of 1975, by s. 13 (1) of Act 96 of 1981, by s. 12 (1) of Act 91 of 1982, by s. 12 (1) of Act 94 of 1983, by s. 9 (1) of Act 65 of 1986 and by s. 10 of Act 90 of 1988 and repealed by s. 17 of Act 129 of 1991.]
12B Deduction in respect of certain machinery, plant, implements, utensils and articles used in farming or production of renewable energy
(1) In respect of any— (a) to (e) inclusive . . .
[Paras. (a) to (e) inclusive deleted by s. 19 (b) of Act 31 of 2005.]
(f) machinery, implement, utensil or article (other than livestock) which is owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the de nition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act and brought into use for the rst time by that taxpayer and used by him or her in the carrying on of his or her farming operations, except any motor vehicle the sole or primary function of which is the conveyance of persons or any caravan or any aircraft (other than an aircraft used solely or mainly for the purpose of crop-spraying) or any of ce furniture or equipment;
[Para. (f) substituted by s. 13 of Act 28 of 1997, by s. 19 (c) of Act 31 of 2005 and by s. 31 (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(g) machinery, plant, implement, utensil or article owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated in paragraph (a) of the de nition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act and which was or is brought into use for the rst time by the taxpayer for the purpose of his or her trade to be used for the production of bio-diesel or bio- ethanol;
[Para. (g) added by s. 11 (1) of Act 16 of 2004 and substituted by s. 19 (c) of Act 31 of 2005 and by s. 31 (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(h) machinery, plant, implement, utensil or article owned by the taxpayer or acquired by the taxpayer as purchaser in terms of an agreement contemplated
in paragraph (a) of the de nition of ‘instalment credit agreement’ in section 1 of the Value-Added Tax Act and which was or is brought into use for the rst time by that taxpayer for the purpose of his or her trade to be used by that taxpayer in the generation of electricity from—
(i) wind power;
(ii) (aa) photovoltaic solar energy of more than 1
megawatt;
(bb) photovoltaic solar energy not exceeding 1
megawatt; or
(cc) concentrated solar energy;
[Sub-para. (ii) substituted by s. 19 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the substitution applies iro years of assessment commencing on or after that date.]
Prelex
Wording of sub-para. (ii) in force until 1 January
2016
(i)
(iii) hydropower to produce electricity of not more than 30 megawatts; and
(iv) biomass comprising organic wastes, land ll gas or plant material; or
[Para. (h) added by s. 19 (d) of Act 31 of 2005 and substituted by s. 23 (1) (a) of Act 22 of 2012 and by s. 31 (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
improvements (other than repairs) to—
(i) any machinery, plant, implement, utensil or
article referred to in paragraph (f), (g) or (h); and (ii) any foundation or supporting structure that is, in terms of the proviso to this subsection, deemed to be part of the machinery, plant, implement,
utensil or article referred to in paragraph (h), which is during the year of assessment used as contemplated in the relevant paragraph,
(ii) solar energy;
[Para. (i) inserted by s. 18 (a) of Act 17 of 2009 and substituted by s. 23 (1) (a) of Act 22 of 2012 – date of commencement: 1 January 2013; this substitution applies in respect of years of assessment commencing on or after that date.]
a deduction calculated in terms of subsection (2) shall be allowed in respect of the year of assessment during which such machinery, plant, implement, utensil or article or any improvement thereto (hereinafter referred to as an asset) is so brought into use and each of the two succeeding years of assessment, such succeeding years of assessment hereinafter in this section referred to as the second and third years, in chronological order: Provided that where any machinery, plant, implement, utensil, article or improvement for which a deduction is allowed under paragraph (h) is mounted on or af xed 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;
(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 af xed thereto; and
(c) the foundation or supporting structure was brought into use on or after 1 January 2013,
124 SAIT CompendIum oF TAx LegISLATIon VoLume 1