Original Research

Inkomstebelastinghantering van korting ontvang in die hande van 'n nie-handeldrywende persoon

Sophia Brink
Journal of Economic and Financial Sciences | Vol 7, No 1 | a137 | DOI: https://doi.org/10.4102/jef.v7i1.137 | © 2019 Sophia Brink | This work is licensed under CC Attribution 4.0
Submitted: 22 December 2017 | Published: 30 April 2014

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Sophia Brink, Department of Accounting, Stellenbosch University, South Africa

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For income tax purposes, a taxpayer operating a business will account for discount received differently from a taxpayer not operating a business. When a taxpayer operating a business obtains goods or services at a discount, the taxpayer can claim a section 11(a) deduction at the value of the goods or services, net of the discount received. The discount reduces the value of the net reduction of taxable income and the taxpayer is effectively taxed on the discount received. A taxpayer who is not operating a business will not qualify for a section 11(a) deduction (read together with section 23(g)) for goods or services obtained (it does not meet the requirements ‘for the purposes of trade’ and ‘in the production of income’). Discount received in the hands of a non-trading person (often a natural person) is currently not subject to normal South African income tax. The main objective of this article is to investigate whether the existing provisions in the Income Tax Act No. 58 of 1962 and related case law provide a basis for taxing discount received in the hands of the non-trading individual. In order to meet this objective, local literature was analysed to determine the correct income tax treatment and it was found that discount received by a non-trading person meets all the requirements of the ‘gross income’ definition and consequently should be taxable.


vereffeningskorting; afslag; bruto inkomste; inkomstebelastingwet nr. 58 van 1962; kontantkorting; korting; korting ontvang


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