Martinez Hair Studio CC is a hairdressing salon. The salon is run from a shop that is

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Martinez Hair Studio CC is a hairdressing salon. The salon is run from a shop that is situated in a shopping centre. The salon pays monthly rental for the shop of R10 000 on the 28th of each month. Apart from the set monthly rental, it also pays a 2% rental based on the annual turnover for the period 1 April 2016 to 31 March 2018 if the turnover exceeds R500 000. The turnover for the current year of assessment, as at the end of February 2018, amounted to R485 000.

Required:

Discuss the deductibility of both the rentals in terms of the general deduction formula for the current year of assessment (28 February 2018). List all the requirements where necessary.

Posted Date: Nov 04, 2021 04:25 AM

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Martinez Hair Studio CC is a hairdressing salon. The salon is run from a shop that is

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The general deduction formula states that an expense is only deductible if it is ... View the full answer

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