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.
