8 July 2024 – It was previously communicated on 16 November 2022 that SARS intends to withdraw Practice Note 31: “Interest paid on moneys borrowed” (PN 31) for years of assessment commencing on or after 1 March 2023. In the same notice it was also requested that representation be made for legislative amendments in place of PN 31 as part of the Budget 2023 Annexure C process
Following the representations received National Treasury proposed the introduction of section 11G – “Deduction of expenses incurred in the production of interest”, which was taken up in the Taxation Laws Amendment Act No.17 of 2023. The proposed effective date of section 11G is for years of assessment commencing on or after 1 January 2025.
The withdrawal of PN 31 will therefore be delayed and will coincide with the effective date of section 11G.
