Page 49 - Profmark Tax Guide 2025 Digital

DEDUCTIONS: SUNDRY

Restraint of trade
Restraint of trade payments that are taxable in the hands of individuals,
labour brokers and personal service providers are deductible by the payer over
three years if the period of the restraint is less than three years, or over the
period of the restraint if longer�
Interest
Interest incurred in the production of income in the carrying on of a trade can
be deducted from income� Interest incurred to produce exempt income will not
qualify for a deduction�
Investment activities are not considered to be a trade, and interest incurred in
investment activities will not qualify for a deduction�

Pre-trade expenditure
Expenditure which would normally be deductible from income, actually incurred
prior to the commencement and in connection with a specific trade, can be
deducted from the income of that trade� The deduction is restricted to the income
from that trade and may not be set off against the income from a different trade�
Research and Development
Scientific and technological research and development expenditure may
qualify for incentive allowances whereby 150% of the operating expenses are
deductible�
Certain requirements must, however, be met, including the Department of
Science and Innovation approval of the deduction� Approved taxpayers will
qualify for the deduction from the date six months before the application was
submitted�

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