| (1) |
For the purposes of this section "scientific or technological research and development" means systematic investigative or systematic experimental activities aimed at resolving scientific or technological uncertainty and the resolution of which is not readily deducible by a person skilled in the relevant scientific or technological field for the purpose of— |
[Words preceding paragraph (a) substituted by section 12(1)(a) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (a) |
discovering new scientific or technological knowledge; |
(b) creating or developing new or significantly improved products, processes or services
[Paragraphs (a)(b) substituted by sections 12(1)(b)(c) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (c) |
[Paragraph (c) deleted by section 12(1)(d) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))] |
| (d) |
creating or developing a multisource pharmaceutical product, as defined in the World Health Organisation Technical Report Series, No. 937, 2006 Annex 7 Multisource (generic) pharmaceutical products: guidelines on registration requirements to establish interchangeability issued by the World Health Organisation, conforming to Regulation 344 of 23 April 2015 and any requirements as must be prescribed by regulations made by the Minister after consultation with the Minister of Higher Education, Science and Innovation; or |
[Paragraph (d) substituted by section 12(1)(e) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (e) |
conducting a clinical trial as defined in Appendix F of the Guidelines for good practice in the conduct of clinical trials with human participants in South Africa issued by the Department of Health (2006), conforming to Regulation 346 of 23 April 2015 and any requirements as must be prescribed by regulations made by the Minister after consultation with the Minister of Higher Education, Science and Innovation; |
[Paragraph (e) substituted by section 12(1)(f) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
Provided that for the purposes of this definition, ‘scientific or technological research and development' does not include activities for the purpose of—
[Words preceding paragraph (a) of the proviso substituted by section 12(1)(g) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (a) |
routine testing, analysis, collection of information or quality control in the normal course of business; |
| (b) |
paragraph (v) of the proviso deleted by section 12(1)(h) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))] |
| (c) |
market research, market testing or sales promotion; |
| (d) |
social science research, including the arts and humanities; |
| (e) |
oil and gas or mineral exploration or prospecting except research and development carried on to develop technology used for that exploration or prospecting; |
| (f) |
the creation or development of financial instruments or financial products; |
| (g) |
the creation or enhancement of trademarks or goodwill; or |
[Section 11D(1) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 10 January 2012 (section 57(1) and (2) of the Taxation Laws Amendment Act, 2023)]
| (a) |
For the purposes of determining the taxable income of a taxpayer that is a company in respect of any year of assessment there shall be allowed as a deduction from the income of that taxpayer an amount equal to 150 per cent of so much of any expenditure actually incurred by that taxpayer directly and solely in respect of the carrying on of scientific or technological research and development in the Republic if— |
[Words preceding section 11D(2)(a)(i) substituted by section 12(1)(i) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (i) |
that expenditure is incurred in the production of income; |
| (ii) |
that expenditure is incurred in the carrying on of any trade. |
| (iii) |
that scientific or technological research and development is approved in terms of subsection (9); and |
[Section 11D(2)(a)(iii) substituted by section 12(1)(j) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (iv) |
that expenditure is incurred within six months prior to or on or after the date of receipt of the application by the Department of Science and Innovation for approval of that scientific or technological research and development in terms of subsection (9). |
[Section 11D(2)(a)(iv) substituted by section 12(1)(k) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (b) |
No deduction may be allowed under this subsection in respect of expenditure incurred in respect of— |
| (i) |
immovable property, machinery, plant, implements, utensils or articles excluding any prototype or pilot plant created solely for the purpose of the process of scientific or technological research and development and that prototype or pilot plant is not intended to be utilised or is not utilised for production purposes after that scientific or technological research and development is completed; |
[Section 11D(2)(b)(i) substituted by section 12(1)(l) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (ii) |
financing, administration, compliance and similar costs. |
[Section 11D(2) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 10 January 2012 (section 57(1) and (2) of the Taxation Laws Amendment Act, 2023)]
| (2A) |
[Section 11D(2A) deleted by section 32(1) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 October 2012] |
| (3) |
[Section 11D(3) deleted by section 29(1)(b) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG37158, dated 12 December 2013 - comes into operation on 1 January 2014 and applies in respect of expenditure incurred in respect of research and development on or after that date - deemed to have come into operation on 12 December 2013 (section 62(1) and (2) of the Taxation Laws Amendment Act, 2023] |
| (4) |
Where any amount of expenditure is incurred by a taxpayer to fund expenditure of another person carrying on scientific or technological research and development on behalf of that taxpayer, the taxpayer may deduct an amount contemplated in subsection (2)— |
[Words preceding section 11D(4)(a) substituted by section 12(1)(m) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (a) |
if that scientific or technological research and development is approved by the Minister of Higher Education, Science and Innovation in terms of subsection (9); |
| (b) |
if that expenditure is incurred in respect of scientific or technological research and development carried on by that taxpayer; |
| (c) |
to the extent that the other person carrying on the scientific or technological research and development is— |
(i)
| (bb) |
the Council for Scientific and Industrial Research; or |
| (ii) |
a company forming part of the same group of companies, as defined in section 41, if the company that carries on the scientific or technological research and development does not claim a deduction under subsection (2); and |
| (d) |
if that expenditure is incurred within six months prior to or on or after the date of receipt of the application by the Department of Science and Innovation for approval of that scientific or technological research and development in terms of subsection (9). |
[Section 11D(4)(a)(b)(c)(d) substituted by sections 12(1)(n)(o)(p)(q) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(4) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 10 January 2012 (section 57(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (5) |
Where a company funds expenditure incurred by another company as contemplated in subsection (4)(c)(ii), any deduction under that subsection by the company that funds the expenditure must be limited to an amount of 150 per cent of the actual expenditure incurred directly and solely in respect of that scientific or technological research and development carried on by the other company that is being funded. |
[Section 11D(5) substituted by section 12(1)(r) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(5) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 10 January 2012 (section 57(1) and (2) of the Taxation Laws Amendment Act, 2023)]
| (5A) |
[Section 11D(5A) deleted by section 32(1) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 October 2012] |
| (5B) |
[Section 11D(5B) deleted by section 32(1) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 October 2012] |
| (6) |
For the purposes of subsections (2) and (4)— |
| (a) |
a person carries on scientific or technological research and development if that person may determine or alter the methodology of the research; |
| (b) |
notwithstanding paragraph (a), certain categories of scientific or technological research and development designated by the Minister in Regulation 343 of 23 April 2015 or by notice in the Gazette are deemed to constitute the carrying on of scientific or technological research and development. |
[Section 11D(6) substituted by section 12(1)(s) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(6) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 10 January 2012 (section 57(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (7) |
Where any amount is received by or accrues to a taxpayer from— |
| (a) |
a department of the Government of the Republic in the national, provincial or local sphere; |
| (c) |
a municipal entity as defined in section 1 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), |
to fund expenditure in respect of any scientific or technological research and development, an amount equal to the amount that is funded must not be taken into account for purposes of the deduction under subsection 2 or (4).
[Section 11D(7) substituted by section 12(1)(t) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(7) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 10 January 2012 (section 57(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (8) |
[Section 11D(8) deleted by section 29(1)(g) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]
|
| (9) |
The Minister of Higher Education, Science and Innovation or a person appointed by the Minister of Higher Education, Science and Innovation must approve any scientific or technological research and development being carried on or funded for the purposes of subsections (2) and (4) having regard to— |
| (a) |
whether the taxpayer has proved to the committee that the scientific or technological research and development in respect of which the approval is sought complies with the criteria contemplated in the definition of ‘scientific or technological research and development’ in subsection (1); |
| (b) |
[Section 11D(9)(b) deleted by section 29(1)(j) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 January 2014] |
| (c) |
such other criteria as the Minister of Finance in consultation with the Minister of Higher Education, Science and Innovation may prescribe by regulation; and |
| (d) |
the application for approval of the project being submitted by the taxpayer and received by the Minister of Higher Education, Science and Innovation in such form and containing such information as the Minister of Higher Education, Science and Innovation may prescribe. |
[Section 11D(9) substituted by section 12(1)(u) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(9) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 10 January 2012 (section 57(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (10) |
If scientific or technological research and development is approved under subsection (9) and— |
| (a) |
any material fact changes which would have had the effect that approval under subsection (9) would not have been granted had that fact been known to the Minister of Higher Education, Science and Innovation at the time of granting approval; |
| (b) |
the taxpayer carrying on that scientific or technological research and development fails to submit a report to the committee as required by subsection (13); or |
| (c) |
the taxpayer carrying on that scientific or technological research and development is guilty of fraud, or misrepresentation or non-disclosure of material facts which would have had the effect that approval under subsection (9) would not have been granted, |
the Minister of Higher Education, Science and Innovation may, after taking into account the recommendations of the committee, withdraw the approval granted in respect of that scientific or technological research and development with effect from a date specified by that Minister.
[Section 11D(10) substituted by section 12(1)(v) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(10) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 10 January 2012 (section 57(1)(2) of the Taxation Laws Amendment Act, 2023)]
(11)
| (a) |
A committee must be appointed for the purposes of approving scientific or technological research and development under subsection (9) consisting of— |
| (i) |
three persons employed by the Department of Science and Innovation appointed by the Minister of Higher Education, Science and Innovation; |
| (ii) |
one person employed by the National Treasury, appointed by the Minister of Finance; and |
| (b) |
The Minister of Higher Education, Science and Innovation or the Minister of Finance may appoint alternative persons to the committee if a person appointed in terms of paragraph (a) is not available to perform any function as a member of the committee. |
| (c) |
If any person is appointed as an alternative in terms of paragraph (b), that person may perform the function of any other person from the Department of Science and Innovation, or the South African Revenue Service in respect of which institution that person is appointed as alternative. |
[Section 11D(11) substituted by section 12(1)(w) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(11) comes into operation on 1 October 2012 and applies in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 14 December 2011 (section 58(1)(2) of the Taxation Laws Amendment Act, 2023)]
(12)
| (a) |
The committee appointed in terms of subsection (11) must perform its functions impartially and without fear, favour or prejudice. |
| (i) |
appoint its own chairperson and determine the procedures for its meetings; |
| (ii) |
evaluate any application and make recommendations to the Minister of Higher Education, Science and Innovation for purposes of the approval of scientific or technological research and development approved under subsection (9); |
| (iii) |
investigate or cause to be investigated scientific or technological research and development approved under subsection (9); |
| (iv) |
monitor all scientific or technological research and development approved under subsection (9)— |
| (aa) |
to determine whether the objectives of this section are being achieved; and |
| (bb) |
to advise the Minister of Finance and Minister of Higher Education, Science and Innovation on any future proposed amendment or adjustment of this section; |
| (v) |
for a specific purpose and on the conditions and for the period as it may determine, obtain the assistance of any person to advise the committee relating to any function assigned to that committee in terms of this section; and |
| (vi) |
require any taxpayer applying for approval of scientific or technological research and development in terms of subsection (9), to furnish any information or documents necessary for the Minister of Higher Education, Science and Innovation and the committee to perform their functions in terms of this section. |
[Section 11D(12) substituted by section 12(1)(x) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(12) comes into operation on 1 October 2012 and applies in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 14 December 2011 (section 58(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (13) |
A taxpayer carrying on scientific or technological research and development approved under subsection (9) must report to the committee annually with respect to— |
| (a) |
the progress of that scientific or technological research and development; and |
| (b) |
the extent to which that scientific or technological research and development requires specialised skills, |
within 12 months after the close of each year of assessment, starting with the year following the year in which approval is granted under subsection (9) in the form and in the manner that the Minister of Higher Education, Science and Innovation may prescribe.
[Section 11D(13) substituted by section 12(1)(y) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(13) comes into operation on 1 October 2012 and applies in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 14 December 2011 (section 58(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (14) |
Notwithstanding Chapter 6 of the Tax Administration Act, the Commissioner may disclose to the Minister of Higher Education, Science and Innovation information in relation to scientific or technological research and development— |
| (a) |
as may be required by that Minister for the purposes of submitting a report to Parliament in terms of subsection (17); |
| (b) |
if that information is material in respect of the granting of approval under subsection (9) or a withdrawal of that approval in terms of subsection (10); and |
| (c) |
as may be required to fulfil the duties as contemplated in subsection (12)(iv). |
[Section 11D(14) substituted by section 12(1)(z) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(14) comes into operation on 1 October 2012 and applies in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 14 December 2011 (section 58(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (15) |
The members of the committee appointed in terms of subsection (11) and any person whose assistance has been obtained by that committee may not— |
| (a) |
act in any way that is inconsistent with the provisions of subsection (12)(a) or expose themselves to any situation involving the risk of a conflict between their responsibilities and private interests; or |
| (b) |
use their position or any information entrusted to them to enrich themselves or improperly benefit any other person. |
[Section 11D(15) substituted by section 1 of the Taxation Laws Amendment Act, 2011 (Act No. 25 of 2011) - effective 1 October 2012]
[Section 11D(15) comes into operation on 1 October 2012 and applies in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 14 December 2011 (section 58(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (16) |
The Minister of Higher Education, Science and Innovation or the person appointed by the Minister of Higher Education, Science and Innovation contemplated in subsection (9)must— |
| (a) |
provide written reasons for any decision to grant or deny any application for approval of any scientific or technological research and development under subsection (9), or for any withdrawal of approval contemplated in subsection (10); |
| (b) |
inform the Commissioner of the approval of any scientific or technological research and development under subsection (9), setting out such particulars as are required by the Commissioner to determine the amount of the deduction in terms of subsection (2) or (4); and |
| (c) |
inform the Commissioner of any withdrawal of approval in terms of subsection (10) and of the date on which that withdrawal takes effect. |
[Section 11D(16) substituted by section 12(1)(zA) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(16) comes into operation on 1 October 2012 and applies in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 14 December 2011 (section 58(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (17) |
The Minister of Higher Education, Science and Innovation must annually submit a report to Parliament advising Parliament of the direct benefits of the scientific or technological research and development in terms of economic growth, employment and other broader government objectives and the aggregate expenditure in respect of such activities without disclosing the identity of any person. |
[Section 11D(17) substituted by section 12(1)(zB) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(17) comes into operation on 1 October 2012 and applies in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 14 December 2011 (section 58(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (18) |
Every employee of the Department of Science and Innovation, every member of the committee appointed in terms of subsection (11) and any person whose assistance has been obtained by that committee— |
| (a) |
must preserve and aid in preserving secrecy with regard to all matters that may come to their knowledge in the performance of their functions in terms of this section; and |
| (b) |
may not communicate any such matter to any person whatsoever other than to the taxpayer concerned or its legal representative, nor allow any such person to have access to any records in the possession or custody of the Department of Science and Innovation, or committee, except in terms of the law or an order of court. |
[Section 11D(18) substituted by section 12(1)(zC) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(18) comes into operation on 1 October 2012 and applies in respect of research and development on or after 1 October 2012 - deemed to have come into operation on 14 December 2011 (section 58(1)(2) of the Taxation Laws Amendment Act, 2023)]
| (19) |
The Commissioner may, notwithstanding the provisions of sections 99(1) and 100 of the Tax Administration Act, raise an additional assessment for any year of assessment with respect to a deduction in respect of scientific or technological research and development which has been allowed, where approval has been withdrawn in terms of subsection (10). |
[Section 11D(19) substituted by section 4(a) of the Tax Administration Laws Amendment Act, 2023, GG49947, dated 22 December 2023, and section 12(1)(zD) of the Taxation Laws Amendment Act, 2023, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(19) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after that date - deemed to have come into operation on 20 December 2012 (section 59(1) and (2) of the Taxation Laws Amendment Act, 2023)]
(20)
| (a) |
A taxpayer may, notwithstanding the provisions of sections 93, 99(1) and 100 of the Tax Administration Act, apply to the Commissioner to allow all deductions provided for under this section in respect of scientific or technological research and development if— |
[Words preceding section 11D(20)(a)(i) substituted by section 4(b) of the Tax Administration Laws Amendment Act, 2023, GG49947, dated 22 December 2023]
| (i) |
expenditure in respect of that scientific or technological research and development was incurred within six months prior to or on or after the date of receipt of an application by the Department of Science and Innovation for the approval of that scientific or technological research and development; |
| (ii) |
that application was not allowable in respect of a year of assessment solely by reason of the absence of approval of that scientific or technological research and development under subsection (9); and |
| (iii) |
that scientific or technological research and development is approved in terms of subsection (9) after that year of assessment. |
| (b) |
The Commissioner may, notwithstanding the provisions of sections 93, 99(1) and 100 of the Tax Administration Act, make a reduced assessment for a year of assessment where expenditure incurred during that year in respect of scientific or technological research and development would have been allowable as a deduction in terms of this section had the approval in terms of subsection (9) been granted during that year of assessment. |
[Section 11D(20)(b) substituted by section 4(c) of the Tax Administration Laws Amendment Act, 2023, GG49947, and section 12(1)(zE) GG49894 of the Taxation Laws Amendment Act, 2023, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D(20)(a) and (b) deemed to have come into operation on 1 October 2012 and applies in respect of expenditure incurred in respect of research and development on or after that date - deemed to have come into operation on 19 January 2017 (section 65(1) and (2) of the Taxation Laws Amendment Act, 2023)]
| (21) |
Any person who contravenes the provisions of subsection (18) is guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding two years. |
[Section 11D(21) inserted by section 12(1)(zF) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
| (22) |
No deduction shall be allowed under this section in respect of applications received after 31 December 2033. |
[Section 11D(22) inserted by section 12(1)(zF) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of applications received and expenditure incurred on or after that date (section 12(2))]
[Section 11D inserted by section 13(1) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]
Housing Development Agency Act, 2008
