Repair vs improvement: Why it matters to Sars

<p><img src="https://biz-file.com/c/2307/706041-208x117.jpg?2" width=208 height=117 alt="Image source: Caspar Roofing Channel from" align="left"><br><span >Image source: Caspar Roofing Channel from [[https://www.pexels.com Pexels]]&lt;/span><p>When determining a taxpayer's taxable income expenditure of a capital nature, such as an improvement to an asset, is not deductible. Section 11(d) of the Income Tax Act, 1962 does however provide for the deduction of expenditure incurred on repairs for the purposes of trade. Distinguishing between a "repair" and an "improvement" is vital as section 11(d) only allows for the deduction of expenditure on repairs. To assist taxpayers in understanding the distinction, Sars released an updated <i>Interpretation Note 74</i> on 16 May 2023.</p><br> <a href="https://www.bizcommunity.com//Article/196/710/240260.html">Read more...</a> | <a href="https://www.bizcommunity.com//SendToFriend.aspx?l=196&c=710&ct=1&ci=240260">Send to a friend</a></p><div style="clear:left"></div>