Amanzi Amahle (Pty) Ltd – Taxable Income Calculation for the Year Ended 31 March 2025
Description Reason / Section Amount (R)
Net profit before adjustments Given 1 355 000,00
Add: Dividends received (from listed company) s10(1)(k)(i) – Exempt income -
Add: Closing stock – Bottled water (at cost) Closing stock at cost (s22) 315 000,00
Less: Opening stock – Bottled water (at cost) Opening stock at cost (s22) (262 000,00)
Add: Closing stock – Empty bottles Packaging material forms part of stock as raw material (s22) 85 000,00
Less: Prepaid insurance (R252,000 × 5/6) Prepaid portion not deductible in 2025 (s23H) (210 000,00)
Add: Insurance expense for March (R252,000 × 1/6) Deductible portion of insurance expense 42 000,00
Add: Employees' tax (PAYE) paid to SARS Not deductible – not an expense (s23(b)) -
Add: Employees’ pension contributions Already deducted from net salary – not deductible again -
Add: Employer's pension fund contributions Deductible under s11(l) 50 000,00
Add: Provisional tax paid Not deductible (s23(d)) -
Add: Trade debt recovered (R25,500) s19 / s8(4)(a) – recouped bad debt 25 500,00
Add: Employee loan written off (R7,250) Not deductible – not a trade debt (s11(i)) -
Less: Security expense (March 2025 invoice) Accrued and deductible (s11(a)) (5 750,00)
Less: Wear & Tear – Wrapping machine (R425,000 × 1/3 × 1/12) Manufacturing asset – 3-year write-off (BGR 7, s11(e)) (11 806,00)
Less: Wear & Tear – Delivery truck (R850,000 ÷ 4) Truck – 4-year write-off (s11(e)) (212 500,00)
11 114 444,00
Final Taxable Income: R1,111,444
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Description Reason / Section Amount (R)
Net profit before adjustments Given 1 355 000,00
Add: Dividends received (from listed company) s10(1)(k)(i) – Exempt income -
Add: Closing stock – Bottled water (at cost) Closing stock at cost (s22) 315 000,00
Less: Opening stock – Bottled water (at cost) Opening stock at cost (s22) (262 000,00)
Add: Closing stock – Empty bottles Packaging material forms part of stock as raw material (s22) 85 000,00
Less: Prepaid insurance (R252,000 × 5/6) Prepaid portion not deductible in 2025 (s23H) (210 000,00)
Add: Insurance expense for March (R252,000 × 1/6) Deductible portion of insurance expense 42 000,00
Add: Employees' tax (PAYE) paid to SARS Not deductible – not an expense (s23(b)) -
Add: Employees’ pension contributions Already deducted from net salary – not deductible again -
Add: Employer's pension fund contributions Deductible under s11(l) 50 000,00
Add: Provisional tax paid Not deductible (s23(d)) -
Add: Trade debt recovered (R25,500) s19 / s8(4)(a) – recouped bad debt 25 500,00
Add: Employee loan written off (R7,250) Not deductible – not a trade debt (s11(i)) -
Less: Security expense (March 2025 invoice) Accrued and deductible (s11(a)) (5 750,00)
Less: Wear & Tear – Wrapping machine (R425,000 × 1/3 × 1/12) Manufacturing asset – 3-year write-off (BGR 7, s11(e)) (11 806,00)
Less: Wear & Tear – Delivery truck (R850,000 ÷ 4) Truck – 4-year write-off (s11(e)) (212 500,00)
11 114 444,00
Final Taxable Income: R1,111,444
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