Acts Online
GT Shield

Income Tax Act, 1962 (Act No. 58 of 1962)

Department of Finance

Practice Note No. 29

Salaries Paid to Members of Incorporated Accounting Practices


Date: 19 August 1994


1) Prior to 21 June 1991 a public accountant registered with the South African Institute of Chartered Accountants was, in terms of the Institute's professional code of conduct, only entitled to perform audit duties if he was in public practice on his own or in partnership with other public accountants.


2) However, in terms of section 21 of the Public Accountants' and Auditors' Act, No. 80 of 1991, provision is made for a public accountant to perform audit duties while practising in corporate form.


3) The salaries and bonuses paid to members of a firm of chartered accountants which practices in corporate form are allowable in full as a deduction to the company in terms of section 11(a) read with section 23(g) of the Income Tax Act, 1962 (the Act).


4) Moreover, the salaries and bonuses paid to members of other firms practising in corporate form such as lawyers, consulting engineers, architects, stockbrokers, etc., will also be allowed in full as a deduction to their respective companies in terms of the Act.