In general, expenses are deductible if they are incurred exclusively in the production of gross income and  are not of a capital or private nature. Expenses are not deductible to the extent that they are incurred in the production of exempt income.

  • Annual and investment allowances on fixed assets. 
  • Additional investment allowance for manufacturing companies on capital expenditure incurred on the acquisition of states-of-art technology equipment. 
  • Marketing and promotional expenses. 
  • Losses incurred in the production of gross income. 
  • Bad debts and irrecoverable sums.
  • Pre-operational expenses of tax incentive companies.
  • Donations to charitable institutions.
  • Contributions to superannuation fund and the employees’ share scheme.
  • Gains on profits derived from sale of units and securities.
  • Expenses incurred in setting up social infrastructure. 
  • Contribution to the national ambulance services.
  • Interest on bonds issued by statutory bodies and debentures issued by companies cultivating sugar cane or manufacturing sugar.