Page 111 - P6 Slide Taxation - Lecture Day 7 - Various Topics
P. 111
Calculation
• When determining the amount of B in the above formula, any
deductible contributions to retirement funds (s 11F) or donations (s
18A), which are limited to an amount based on the resident’s total
taxable income, must be deemed to be incurred proportionately
between amounts sourced in South Africa and amounts from
sources outside of South Africa.
• This apportionment is based on the relative taxable income derived
from each (proviso (i) (aa) to s 6 quat (1B)). The deduction of
contributions to retirement funds (s 11F) must be apportioned on
the basis of taxable income from sources within and outside South
Africa, before taking into account the deduction for donations (s
18A) or the deduction for foreign taxes (see below).
• Thereafter, the deduction for donations must be apportioned on
the basis of taxable income from sources within and outside South
Africa, before taking into account the deduction for foreign taxes
(see below). (Refer to example 21,19 IN SILK)
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