This lesson provides a practical understanding of income tax deductions under South African law. Participants will explore the general deduction formula, specific allowable deductions, and common limitations. The session is designed to strengthen tax compliance, improve accuracy in returns, and support informed decision-making for professionals handling business taxation.
The lesson examines the general deduction formula and key categories of specific deductions, including legal expenses, repairs and maintenance, bad and doubtful debts, learnership deductions, donations, credit agreements, debtor allowances, future contract costs, and assessed losses. It also highlights deductions that may be disallowed or limited, while excluding capital allowances.
Key Topics Covered:
• General deduction formula
• Legal expenses and repairs
• Bad and doubtful debts
• Learnership deductions and donations
• Credit agreements and debtor allowances
• Future contract costs and assessed losses
• Disallowed or limited deductions
• Tax practitioners and accountants
• Auditors and compliance officers
• Financial managers and controllers
• Business owners and entrepreneurs
• Students and trainees in taxation and accounting
