16 September 2024 The following Corporate Income Tax enhancements were implemented based on legal and form changes:
- Tax treatment of an asset acquired as government grant in kind: If a taxpayer acquires an asset as or with a government grant, wear and tear cannot be claimed on the asset. This also means that even if the taxpayer uses the grant to buy another asset, that something cannot be depreciated either (for tax purposes).
- Credit Agreements and Debtors Allowance: A new field for Credit agreement and debtors allowance (lay-by) (s24) will be added to the ITR14 return. This is an allowance that can be claimed in the current year, but it needs to be reversed in the following year.
- Additional deduction in respect of learnership agreements: A deduction for learnership agreements can only be allowed if the agreement was entered into before 1 April 2024 and therefore a new validation question will be added to the ITR14 return asking the taxpayer to declare that the agreement was entered into before 1 April 2024.
- Refinements to the Research and Development Tax Incentive: Together with the name change to Department of Science and Innovation, a new qualification question will be added to the Tax Allowances / Limitations container to allow taxpayers to indicate that their incentive approval was not withdrawn.
- Expenses incurred in the production of interest: In terms of s11G, taxpayers must limit interest expenses to non-trading interest income. An adjustment field will be added to the tax computations for all company types, thereby allowing taxpayers to add back non-allowable interest.
- Enhanced Deduction in respect of certain machinery, plant, implements, utensils and articles used in the production of renewable energy: The ITR14 will be updated to allow taxpayers to claim s12BA allowance. A container will be created for deduction details and qualifying questions. A validation will ensure that the taxpayers claim their 125% deduction.
- Extension of the Urban Development Zone (UDZ) Tax Incentive sunset date: The UDZ tax incentive sunset date is extended by another period of two years from 31 March 2023 to 31 March 2025.
- Request for Reduced Assessment (RRA02): New functionality has been introduced to manage requests for reduced assessments for companies under s93 of the Tax Administration Act (TAA). Taxpayers are required to complete the Request for Reduced Assessment (RRA02) form. A case will then be created to assess whether the taxpayer qualifies for a reduced assessment.