SARS implemented several key enhancements to Corporate Income Tax based on recent legal and form changes. These updates impact how certain deductions and allowances are claimed on the ITR14 return. Here are the highlights:

1. Government Grants and Asset Depreciation

   Assets acquired with government grants cannot claim wear and tear deductions, even if the grant is used to purchase a different asset.

2. Credit Agreements and Debtors’ Allowance

   A new field for "Credit agreement and debtors’ allowance (lay-by)" under s24 has been added, with the requirement that this allowance be reversed in the following tax year.

3. Learnership Agreements Deduction

   Only learnership agreements entered into before 1 April 2024 qualify for a deduction, with a new validation question in the ITR14 return to confirm this.

4. Research and Development (R&D) Incentive

   Updated to reflect the Department of Science and Innovation’s new name and includes a validation question for taxpayers to confirm that their R&D incentive approval wasn’t withdrawn.

5. Interest Expense Limitation

   Taxpayers must limit interest expenses to non-trading interest income (section 11G), with a new adjustment field allowing to add back non-allowable interest in tax computations.

6. Renewable Energy Deductions

   A 125% deduction under s12BA for qualifying renewable energy equipment has been added, with detailed qualifying questions and validations.

7. Urban Development Zone (UDZ) Incentive Extension

   The UDZ tax incentive has been extended to 31 March 2025.

8. Requests for Reduced Assessment (RRA02)

   New functionality allows taxpayers to submit a request for reduced assessments via the RRA02 form, with cases created to evaluate eligibility.

For more details and a list of updated guides, refer to the updated Corporate Income Tax webpage.

See the updated ITR14 prototype Tax Return for corporate income tax as an example.