Page 141 - SAIT Compendium 2016 Volume1

s 12H INCOME TAX ACT 58 OF 1962 s 12I
‘registered learnership agreement’ means a learnership agreement that is—
(a) registered in accordance with the Skills Development
Act, 1998; and
(b) entered into between a learner and an employer
before 1 October 2016;
[De nition of ‘registered learnership agreement’ amended by s. 36 (a) and (b) of Act 24 of 2011 and substituted by s. 27 (1) (b) of Act 22 of 2012 – date of commencement: 1 January 2013; this substituted de nition applies in respect of learnership agreements entered into on or after that date]
‘SETA’ means a sector education and training authority established in terms of section 9 (1) of the Skills Development Act, 1998, and de ned as such in section 1 of that Act;
‘Skills Development Act, 1998’ means the Skills Development Act, 1998 (Act 97 of 1998).
(2) (a) In addition to any deductions allowable in terms of this Act and subject to paragraph (b), where—
(i) during any year of assessment a learner is a party to a registered learnership agreement with an employer; and
(ii) that agreement was entered into pursuant to a trade carried on by that employer,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R30 000.
(b) Where a learner is a party to a registered learnership agreement as contemplated in paragraph (a) for a period of less than 12 full months during the year of assessment contemplated in paragraph (a), the amount that is allowed to be deducted in terms of that paragraph must be limited to an amount which bears to an amount of R30 000 the same ratio as the number of full months that the learner is a party to that agreement bears to 12.
(c) If a registered learnership agreement is registered as contemplated in paragraph (a) of the de nition of ‘registered learnership agreement’ within a period of twelve months after the last day of the year of assessment contemplated in paragraph (a), the registered learnership agreement must be deemed to have been so registered on the date on which the registered learnership agreement was entered into as contemplated in paragraph (b) of that de nition.
[Para. (c) added by s. 27 (1) (c) of Act 22 of 2012 – date of commencement: 1 January 2013; this new paragraph applies in respect of learnership agreements entered into on or after that date.]
(3) In addition to any deductions allowable in terms of this Act, where—
(i) during any year of assessment a learner is a party to a registered learnership agreement with an employer for a period of less than 24 full months;
(ii) that agreement was entered into pursuant to a trade carried on by that employer; and
(iii) that learner successfully completes that learnership during that year of assessment,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R30 000.
(4) In addition to any deductions allowable in terms of this Act, where—
(i) during any year of assessment a learner is a party to a registered learnership agreement with an employer for a period that equals or exceeds 24 full months;
(ii) that agreement was entered into pursuant to a trade carried on by that employer; and
(iii) that learner successfully completes that learnership during that year of assessment,
there must, in that year, be allowed to be deducted from the income derived by that employer from that trade an amount of R30 000 multiplied by the number of consecutive 12 month periods within the duration of that agreement.
(5) Where a learner contemplated in subsection (2), (3) or (4) is a person with a disability (as de ned in section 6B (1)) at the time of entering into the learnership agreement, the amounts contemplated in subsection (2), (3) or (4) must be increased by an amount of R20 000.
[Sub-s. (5) substituted by s. 21 (1) of Act 43 of 2014 – date
of commencement deemed to have been 1 March 2014; the substituted paragraph applies iro years of assessment commencing on or after that date.]
(6) This section does not apply in respect of any registered learnership agreement where—
(a) the learner that is the party to that agreement previously
failed to complete any other registered learnership agreement to which the employer or an associated institution in relation to that employer was a party; and
(b) the registered learnership agreement contains the same education and training component as that other registered learnership agreement.
[Sub-s. (6) substituted by s. 27 (1) (d) of Act 22 of 2012 – date of commencement: 1 January 2013; this substituted subsection applies in respect of learnership agreements entered into on or after that date]
(7) Any SETA with which a learnership agreement has been registered as contemplated in the Skills Development Act, 1998, must submit to the Minister any information relating to that learnership agreement required by the Minister in the form and manner and at the place and time that the Minister prescribes.
(8) In respect of each year of assessment during which an employer is eligible for any deduction contemplated in this section, the employer must submit to the SETA with which the learnership agreement is registered any information relating to that learnership agreement required by the SETA in the form and manner and at the place and time indicated by the SETA.
[Sub-s. (8) substituted by s. 25 of Act 7 of 2010.]
[S. 12H inserted by s. 18 (1) of Act 30 of 2002, amended by s. 32 (1) (a) of Act 45 of 2003, by s. 22 of Act 31 of 2005, by s. 25 (1) of Act 9 of 2006, by s. 2 (2) (b) of Act 8 of 2007, by s. 1 (2) (c) of Act 3 of 2008 and by s. 25 of Act 60 of 2008 and substituted by s. 23 of Act 17 of 2009.]
12I Additional investment and training allowances in respect of industrial policy projects
(1) For the purposes of this section—
‘adjudication committee’ means the committee contemplated in subsection (16);
‘brown eld project’ means a project that represents an expansion or upgrade of an existing industrial project;
‘compliance period’ means the period—
(a) commencing at the beginning of the year of assessment following the year of assessment in which
assets are rst brought into use; and
(b) ending at the end of the year of assessment three
years after the year of assessment in which assets are
rst brought into use;
[De nition of ‘compliance period’ inserted by s. 22 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement deemed to have been 8 January 2009.]
‘cost of training’ means—
(a) in the case of training provided by the taxpayer, the
cost of remuneration of employees of the taxpayer who SAIT CompendIum oF TAx LegISLATIon VoLume 1 133
INCOME TAX ACT – SECTIONS