Ngwenya (Pty) Ltd has a 28 February 2025 year end. The company made the following payments during the 2025 year of assessment:

1) R70 000 annual annuity for life to Mrs Zikalala, a dependant of a former employee, Mr Zikalala, who retired due to old age in 2022.

2) R60 000 annual annuity for life to a former employee, Mrs Swarts who retired after being diagnosed with a terminal illness.

Ubuntu (Pty) Ltd owns an office building from which it earns rental income. The CEO did not like the colour of the new roof tiles that were installed in the prior year of assessment at a cost of R170 000. The company replaced it with new roof tiles that are differently coloured on 1 April 2024 at a cost of R400 000, in order to improve the appearance of this property.

Determine the amount that Ubuntu (Pty) Ltd can deduct as repairs in calculating the taxable income for the 2025 year of assessment ending 28 February.

Ngwenya (Pty) Ltd in December 2024, sponsored a national weightlifting championship with branded equipment (displaying their logo) worth R240 000.

How much can Ngwenya (Pty) Ltd deduct from its income for the year of assessment ended 28 February 2025.

Ngwenya (Pty) Ltd made the following donations during the 2025 year of assessment ending 28 February:

Paint supplies valued at R85 000 were donated to a children's orphanage (a registered public benefit organisation). At year-end Ngwenya (Pty) Ltd is in possession of a section 18A receipt for this donation and the orphanage had painted their premises with the donated paint.

R25 000 cash to a local home shelter. At the time the donation was made, the home shelter was waiting to be registered as a public benefit organisation. At year-end Ngwenya (Pty) Ltd was not in possession of a section 18A receipt for this donation.

What will the donations deduction be for Ngwenya (Pty) Ltd assuming they had a taxable income of R700 000 before taking the above into account?

On 1 February 2025, Ubuntu (Pty) Ltd acquired a new non-manufacturing machine for R1 000 000. The machine was brought into use immediately.

Calculate the capital allowance to be claimed by Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28 February. Assume Ubuntu (Pty) Ltd is a Small Business Corporation, as defined in the Act.

Ngwenya (Pty) Ltd leases a one-bedroom flat in Durban for a one-year period from 1 August 2024 to 31 July 2025 for its employees who must travel from other locations to work in Durban for extended periods of time. The company paid the annual rental of R130 000 in advance on 1 August 2024.

How much is deductible by Ngwenya (Pty) Ltd in determining its taxable income for the year of assessment ended 28 February 2025.

Ngwenya (Pty) Ltd incurred some research and development costs. The research and development was approved by the Minister of Science and Technology under section 11D(9) on 30 June 2024. The following expenses relating to this research were incurred during the 2025 year of assessment:

Computer equipment purchased for R1 200 000 was brought into use on 1 September 2024 for the purposes of this research.

Research consumables for this project were purchased on 31 May 2024 for an amount of R360 000.

Salaries of R700 000 were paid to research assistants on 31 December 2024.

Ngwenya (Pty) Ltd during the 28 February 2025 year of assessment, had the following two transactions occur which the financial accountant asks you what the tax implications are:

Transaction 1:

Ngwenya purchased trading stock during the current year of assessment at a cost of R40 000. This stock was given for no consideration to a homeless shelter. The shelter is not a registered PBO. The stock had a market value of R53 000.

Transaction 2:

Trading stock (specific items) were purchased for an amount of R148 000 during the year of assessment. None of this trading stock were sold and at year-end after the auditors' stock take, these specific items had a market value of R72 000.

On 1 February 2024, Ubuntu (Pty) Ltd acquired a second-hand machine for R600 000. The machine was brought into use the same day in a process of manufacture.

Calculate the allowance to be claimed by Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28 February 2025. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.