Interpretation Note 106: section 13sex, Income Tax Act, Deduction in Respect of Certain Residential Units

SARS issued IN 106 on 14 July 2023 providing guidance on the interpretation and application of section 13sex of the Income Tax Act.

13sex provides that a taxpayer may deduct an allowance of 5% of the cost to the taxpayer of any new and unused residential unit, or any new or unused improvement to a residential unit, if certain requirements are met.

In addition, the taxpayer may qualify for an additional 5% allowance on that residential unit if it qualifies as a low-cost residential unit.

You can read IN 106 here.