| (2) | The total deduction allowed in terms of subsection (1) must not in a year of assessment exceed the lesser of— |
| (a) | R350 000: Provided that where any person’s year of assessment is less than a period of 12 months, the aggregate of amounts that shall be allowed as deductions under this paragraph for years of assessment during the period of 12 months commencing on 1 March and ending at the end of February of the immediately following calendar year, must not exceed R350 000; |
[Section 11F(2)(a) proviso inserted by section 13(1)(a) of the Taxation Laws Amendment Act, 2023, dated 22 December 2023 - comes into operation on 1 March 2024 and applies in respect of years of assessment commencing on or after that date (section 13(2))]
| (b) | 27,5 per cent of the higher of the person’s— |
| (ii) | taxable income (other than in respect of any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit and severance benefit) as determined before allowing any deduction under this section and sections 6quat(1C) and 18A; or |
| (c) | the taxable income (other than in respect of any retirement fund lump sum benefit, retirement fund lump sum withdrawal benefit and severance benefit) of that person before— |
| (i) | allowing any deduction under this section and sections 6quat(1C) and 18A; and |
[Section 11F(2) substituted by section 26(1)(a), (b) and (c) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019 - effective 1 March 2019 (section 26(2)]
| (3) | Any amount contributed to a pension fund, provident fund or retirement annuity fund in any previous year of assessment which has been disallowed solely by reason of the fact that the amount that was contributed exceeds the amount of the deduction allowable in respect of that year of assessment is deemed to be an amount contributed in the current year of assessment, except to the extent that the amount contributed has been— |
| (a) | allowed as a deduction against income in any year of assessment; |
| (b) | accounted for under paragraph 5(1)(a) or 6(1)(b)(i) of the Second Schedule; or |
| (c) | taken into account in determining the amounts exempt under section 10C. |
[Section 11(f)(3)(c) substituted by section 26(1)(d) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]
| (4) | Any amount paid or contributed by an employer of the person on behalf of or for the benefit of that person must be deemed— |
| (i) | to be equal to the amount of the cash equivalent of the value of the taxable benefit contemplated in paragraph 2(l) of the Seventh Schedule determined in accordance with paragraph 12D of that Schedule; or |
| (ii) | if that amount is paid by an employer to a retirement annuity fund, to be equal to the amount of the cash equivalent of the value of the taxable benefit contemplated in paragraph 2(h) of the Seventh Schedule determined in accordance with paragraph 13 of that Schedule; and |
| (b) | to the extent that the amount has been included in the income of that person, to have been contributed by that person. |
[Section 11F(4)(b) substituted by section 13(1)(b) of the Taxation Laws Amendment Act, 2023, dated 22 December 2023 - comes into operation on 1 March 2024 and applies in respect of years of assessment commencing on or after that date (section 13(2))]
| (5) | For the purposes of this section— |
| (a) | a partner in a partnership must be deemed to be an employee of the partnership; and |
| (b) | a partnership must be deemed to be the employer of the partners in that partnership. |
[Section 11F inserted by section 21(1) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]
