Not of a capital nature. General deduction formula Section11aprovided a deduction for expenditure and losses actually incurred in the Republic in the production of the income provided they are not of a capital nature. General Deductions S11 a Preamble - What may be deducted S23 What may not be deducted NO DEDUCTION MAY BE CLAIMED IF THE TAXPAYER DOES NOT CARRY ON A TRADE.
The salon pays monthly rental for the shop of R10 000 on the 28th of each month.
Capital expenditure is NOT deductible. This section when read together with section 23 is referred to as the general deduction formula. Just like 2020 the standard deduction for 2021 is the greater of 1100 or earned income plus 350 if you can be claimed as a dependent on someone elses tax return. For the following expenditure calculate the deductions available for a company that has a profit of R10000000 before taking into account the items mentioned below.