S.L. 123.194 чл. 6Loss.

(1) Where a beneficiary incurs a loss in respect of the qualifying IP which he is entitled to set-off against his income or gains in terms of article 5 or article 14 of the Act and such beneficiary claims the benefit of such loss, he shall be entitled to elect to benefit from any one of the following:

(a) in lieu of the entitlement set out in article 5 and article 14 of the Act, a deduction corresponding to five per cent (5%) of the loss which would otherwise be available for deduction in terms of the said provisions of the Act in respect of the qualifying IP; or

(b) a deduction corresponding to the full amount of the loss which would be available for deduction in terms of the provisions of article 5 or article 14 of the Act, so however that the following conditions shall apply where the beneficiary elects for this treatment:

(i) he shall not be entitled to claim the tax treatment referred to in paragraph (a) for any subsequent year of assessment; and

(ii) where in any basis year following that in which a loss is claimed in terms of this paragraph, the beneficiary derives income or gains from the qualifying IP in respect of which he has claimed such loss, the amount of the deduction claimed in terms of rule 4 in that basis year shall be determined as if the term "Income or Gains derived from qualifying IP" was a reference to the income or gains derived from the qualifying IP in that basis year less the amount of losses claimed in prior years in respect of the qualifying IP and where the amount of losses incurred in prior years is such that it cannot be wholly set off against the income or gains for that basis year, it shall, to the extent to which it cannot be so set off against income or gains for the said year, be carried forward and set off against what would otherwise have been the income or gains derived from the qualifying IP in subsequent years.

(2) An election in terms of sub-rule (1) shall be made in such form and manner as the Commissioner may determine and shall be irrevocable.