Corporate taxes: Taxable income defined

摘要

Taxable corporate income generally represents all income from any entity based in South Africa minus noncapital expenditures and losses incurred in an income-producing year. For instance, the cost of capital flotation (including legal and underwriting fees) is not deductible, but interest charges are. This definition has applied since 2001, when the tax system shifted from being source based to residence based. Income not sourced in South Africa can be taxed in other jurisdictions. Sections 9c and 9d of the Income Tax Act (No. 58 of 1962) require full disclosure of beneficial interests in offshore tax structures, regardless of whether they are repatriated.