CATEGORIES
- (1) Negotiating Tax Debt and Payment Arrangements with SARS
- (34)Accounting
- (1)Accounting for Income Tax
- (2)Accounting for Income Tax
- (8)Administration of Estates
- (1)Advisory Services
- (1)Application of tax rates, s6(2) rebates
- (1)Assessed losses
- (4)Audit, Reviews & Other Services
- (9)Blogs
- (8)Capital Gains Tax
- (1)Capital Gains Tax - Individuals Tax
- (1)Capital Gains Tax Implications of Trusts
- (2)Case study: Home office expense
- (1)Case study: Travel allowances
- (1)Company Formations
- (1)Compliance
- (123)Corporate Tax
- (9)Customs and Excise
- (2)Deceased Estate
- (1)Deductions Pre-trade and prepaid expenses
- (1)Deregistration
- (2)Employer and Employee (PAYE and UIF Specific)
- (1)Estate Duty
- (1)Events / Webinars
- (10)Faculty News
- (2)Farming
- (152)Individuals Tax
- (1)Input - Customs Duty
- (3)Interest
- (13)International Tax
- (17)Legislation
- (1)Low interest rate loans and loan subsidies
- (1)Nature of the rights of beneficiaries
- (1)Notional input tax
- (9)Payroll
- (2)Practical Payroll
- (2)Provisional tax (Link with other Taxes)
- (2)SARS Dispute Resolution
- (4)SARS Issues
- (1)Salaried Employees
- (135)Tax Administration
- (2)Tax Administration Part 2B: Resolving Problems with SARS using the Tax Ombud
- (1)Tax Administration Part 3B Dispute Resolution - Objection and appeal
- (3)Tax Update
- (1)Tax implications of loans to trusts
- (1)Tax residence
- (1)Tax returns and payments
- (2)Transfer-Pricing
- (1)Trust Income / Gain Allocations
- (1)Trust types and income allocations
- (6)Trusts
- (72)VAT
- (3)VAT periods
- (1)Wear and tear allowances
- (1)Wills, Estates & Trusts
- (1)Zero Rated
- (1)eFiling
- Show All
Film Entertainment Industry Tax
- 27 March 2024
- Accounting
- The Tax Faculty Tax Specialist
This article is based on tax law for the year ending 29 February 2024.
1. The Problem / Facts
How does section 12O of the Income Tax Act provide an exemption from normal tax for income derived from the exploitation rights of approved films, and what are the requirements and practical considerations for taxpayers to utilize this exemption?
2. Applicable Law
Income Tax Act Section 24F (replead), 12O
3. Application of the Law to the Facts
Section 12O of the Income Tax Act 1962 provides for an exemption from normal tax for income derived from the exploitation rights of a film that has been approved by the National Film and Video Foundation as a local production or co-production. This section is still valid and applies to all receipts and accruals of approved films if principal photography commenced on or after 1 January 2012 but before 1 January 2024. To utilise this exemption in practice, the taxpayer must meet the requirements of Section 12O and declare the exempt income in their income tax return.
The Guide to the Exemption from Normal Tax of Income from Films provides several examples to illustrate the application of the act. Click here to view.
Join Nico Theron on how to survive a SARS Audit the 15th of April.
- Click here to view a short introduction video
- Click here for more information