Page 58 - F6 Slide - Taxation - Lecture Day 2

Prepaid expenses (s23H)

Prepaid expenses are 100% deductible in

the current year if the goods/services

which related to the expenditure:

 Will be rendered in the following years

AND EITHER

 Will be supplied/rendered < 6 months after the end of the tax year

OR

 If aggregate of all prepaid expenditure < R100 000

OR

 Liability due to legislation

 eg. legislation determines that property tax has to be paid in

advance)

OR

 Trading stock