4.9 Expenditure, Deduction and Allowances

Deductible: expenditure incurred in the production of the income; trading expenses; depreciation; bad debts satisfying the Act's tests; contributions to approved retirement funds within limits. Not deductible: capital expenditure (except via depreciation), private/domestic expenses, fines and penalties, expenditure of the exempt income, and entertainment-type items the Act disallows. Allowances and rebates: the approved-donation deduction (within the Act's caps), and credits the law grants (e.g., for foreign tax paid, within double-taxation-relief rules and treaty limits).