Income Tax Act, 1962 (Act No. 58 of 1962) Preliminary 1. Interpretation

 

 

"agent"

includes any partnership or company or any other body of persons corporate or unincorporate acting as an agent;

 

"aggregate capital gain"

means an amount determined in terms of paragraph 6 of the Eighth Schedule;

[Definition inserted by section 5(a) of the Taxation Laws Amendment Act, 2001 (Act No. 5 of 2001)]

 

"aggregate capital loss"

means an amount determined in terms of paragraph 7 of the Eighth Schedule;

[Definition inserted by section 5(a) of the Taxation Laws Amendment Act, 2001 (Act No. 5 of 2001)]

 

"assessed capital loss"

means an amount determined in terms of paragraph 9 of the Eighth Schedule;

[Definition inserted by section 5(a) of the Taxation Laws Amendment Act, 2001 (Act No. 5 of 2001)]

 

"assessment"

has the meaning assigned under section 1 of the Tax Administration Act, and includes a determination by the Commissioner—

[Definition substituted by section 271, read with  paragraph 23(a) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

"assisted gold mine"

[Definition deleted by section 2(a) of the Income Tax Act, 1992 (Act No. 141 of 1992)]

 

"average exchange rate"

in relation to a year of assessment means the average determined by using the closing spot rates at the end of daily or monthly intervals during that year of assessment, which must be consistently applied within that year of assessment;

[Definition substituted by section 3(1)(a) of the Revenue Laws Second Amendment Act, 2005 (Act No. 32 of 2005) - effective 8 November 2005]

 

"Banks Act"

means the Banks Act, 1990 (Act No. 94 of 1990);

[Definition inserted by section 4 of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"beneficiary"

in relation to a trust means a person who has a vested or contingent interest in all or a portion of the receipts or accruals or the assets of that trust.

[Definition inserted by section 3(1)(b) of the Revenue Laws Second Amendment Act, 2005 (Act No. 32 of 2005)]

 

"benefit fund"

means—

[Paragraph (a) substituted by section 2(1)(a) of the Income Tax Act, 1986 (Act No. 65 of 1986)]

[Paragraph (b) substituted by section 4(1)(b) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 January 2014]

 

"bonus debentures or securities"

means debentures or securities issued by a company, whether by way of a bonus award or otherwise, in such manner that the company's reserves or unappropriated profits are in whole or in part applied in paying up such debentures or securities;

[Definition inserted by section 4(1)(a) of the Income Tax Act, 1974 (Act No. 85 of 1974)]

 

"building society"

[Definition deleted by the section 2(1)(a) of Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)];

 

"business day"

[Definition deleted by section 271, read with paragraph 23(b) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)];

 

"capital gain"

means an amount determined in terms of paragraph 3 of the Eighth Schedule;

[Definition inserted by section 5(d) of the Taxation Laws Amendment Act, 2001 (Act No. 5 of 2001)]

 

"capital loss"

means an amount determined in terms of paragraph 4 of the Eighth Schedule;

[Definition inserted by section 5(d) of the Taxation Laws Amendment Act, 2001 (Act No. 5 of 2001)]

 

"capitalization shares"

[Definition deleted by section 6(1)(a) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)  - effective 1 January 2011];

 

"Chief Executive Officer"

[Definition deleted by section 34(1) of the South African Revenue Service Act, 1997 (Act No. 34 of 1997)]

 

"child"

in relation to any person, includes any person adopted by him or her—

[Definition substituted by section 2(1)(b) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]

 

"close corporation"

means a close corporation within the meaning of the Close Corporations Act, 1984 (Act No. 69 of 1984);

[Definition inserted by section 2(1)(a) of the Income Tax Act, 1984 (Act No. 121 of 1984)]

 

"collateral arrangement"

means a collateral arrangement as defined in section 1 of the Securities Transfer Tax Act, 2007 (Act No. 25 of 2007);

[Definition inserted by section 3(1) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 January 2016]

 

"Collective Investment Schemes Control Act"

means the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002);

[Definition inserted by section 4(1)(c) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 January 2014]

 

"Commissioner"

means the Commissioner for the South African Revenue Service appointed in terms of section 6 of the South African Revenue Service Act, 1997 (Act No. 34 of 1997), or the Acting Commissioner designated in terms of section 7 of that Act;

[Definition substituted by section 271, read with paragraph 23(c) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

"Companies Act"

means the Companies Act, 2008 (Act No. 71 of 2008);

[Definition inserted by section 4(1)(d) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 January 2014]

 

"company"

includes—

[Paragraph (a) substituted by section 2(1)(b) of the Income Tax Act, 1984 (Act No. 121 of 1984]

[Paragraph (b) substituted by section 13(1)(a) of the Taxation  Laws Amendment Act, 2000 (Act No. 30 of 2000) - deemed to have come into operation on 23 February 2000]

[Paragraph (c) inserted by section 3(1)(a) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]

[Paragraph (d) substituted by section 13(1)(c) of the Taxation  Laws Amendment Act, 2000 (Act No. 30 of 2000) - effective 1 January 2001]

[Paragraph (e)(ii) substituted by section 4(1)(e) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 January 2014]

[Paragraph (e)(iii) substituted by section 4(1)(a) of the Taxation Laws Amendment Act, 2021 (Act No. 20 of 2021), Notice No. 770, GG45787, dated 19 January 2022]

[Paragraph (e) substituted by section 6(1)(b) of the Revenue Laws Amendment Act, 2002 (Act No. 74 of 2002), with effect from the date that the Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002) came into operation : 3 March 2003]

[Paragraph (f) substituted by section 6(1)(c) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)]

but does not include a foreign partnership;

[Definition of company amended by section 6(1)(d) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)]

 

"connected person"

means—

[Paragraph (a)(ii) substituted by section 3(1)(c) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]

[Paragraph (b) amended by section 3(1)(d) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]

[Paragraph (bA) substituted by section 5(1)(a) of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016)]

[Paragraph (c) substituted by section 4(1)(g) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

[Words preceding paragraph (d)(iv)(aa) substituted by section 4(1)(b) of the Taxation Laws Amendment Act, 2021 (Act No. 20 of 2021), Notice No. 770, GG45787, dated 19 January 2022]

[Paragraph (d)(iv) substituted by section 4(1)(i) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

[Paragraph (d)(v) substituted by section 4(1)(k) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

[Paragraph (d)(vA)(bb) substituted by section 19(1)(d) of the Taxation Laws Amendment Act, 1998 (Act No. 30 of 1998)]

[Paragraph (d)(vi)(bb) substituted by section 103(1)(a) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), Notice No. 19, GG 42172, dated 17 January 2019 - effective 8 January 2016]

[Paragraph (d)(vi)(cc) substituted by section 2(1)(e) of the Income Tax Act, 1997 (Act No. 28 of 1997)]

Provided that for the purposes of this definition, a company includes a portfolio of a collective investment scheme;

[Proviso amended by section 2(1)(a) of  the Taxation Laws Amendment Act, 2017 ( the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]

 

"contributed tax capital"

in relation to a class of shares in a company, means—

[Words preceding paragraph (a) substituted by section 1(1)(b) of the Taxation Laws Amendment Act, 2014 Act No. 43 of 2014)]

[Words preceding paragraph (a)(ii) substituted by section 1(1)(c) of the Taxation Laws Amendment Act, 2014 Act No. 43 of 2014)]

[Paragraph (a)(i) substituted by section 1(1)(d) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

Provided that the market value must be reduced by an amount equal to the difference between—

each resident company in which that foreign company directly holds at least 50 per cent of the equity shares or voting rights immediately before the date on which that foreign company becomes a resident;

[Paragraph (a)(i) proviso inserted by section 1(a) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 January 2024 and applies in respect of any company that becomes a resident on or after that date (section (1)(2))]

[Paragraph (a)(ii) substituted by section 1(1)(d) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Paragraph (a)(iii) inserted by section 1(1)(d) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

reduced by so much of that amount as—

[Paragraph (a)(aa) substituted by section 1(1)(e) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Paragraph (a)(bb) substituted by section 1(1)(e) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Paragraph (a)(cc) substituted by section 1(1)(e) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Words preceding paragraph (b)(i) substituted by section 1(1)(f) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Paragraph (b)(i) substituted by section 1(1)(g) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Paragraph (b)(ii) substituted by section 1(1)(g) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Paragraph (b)(iii) inserted by section 1(1)(g) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

reduced by so much of that amount as—

[Paragraph (b)(aa) substituted by section 1(1)(h) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Paragraph (b)(bb) substituted by section 1(1)(h) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Paragraph (b)(cc) inserted by section 1(1)(h) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

[Paragraph (b) amended by section 1(1)(f) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

Provided that the amount transferred by a company as contemplated in paragraph (a) or (b) for the benefit of a person holding shares of any class of shares of that company must not exceed an amount that bears to the total of the amount of contributed tax capital attributable to that class of shares immediately before the transfer the same ratio as the number of shares of that class held by that person bears to the total number of shares of that class;

Provided further—

[Further proviso inserted by section 4(1)(c) of the Taxation Laws Amendment Act, 2021 (Act No. 20 of 2021), Notice No. 770, GG45787, dated 19 January 2022 - effective 1 January 2023 (section 4(2))]

Provided further that an amount transferred by a company as contemplated in paragraph (a) or (b) must comprise a transfer of contributed tax capital only where—

are each transferred an equal amount of contributed tax capital in respect of that class of shares; and

[Further proviso inserted by section 41(1) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023 - deemed to have come into operation on 19 January 2022 (section 41(2))]

 

"controlled foreign company"

means a controlled foreign company as defined in section 9D;

[Definition inserted by section 2(1)(b) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021]

 

"controlled group company"

means a controlled group company contemplated in the definition of "group of companies";

[Definition inserted by section 6(1)(d) of the Revenue Laws Amendment Act, 2002 (Act No. 74 of 2002), deemed to have come into operation on 6 November 2002]

 

"controlling group company"

means a controlling group company contemplated in the definition of "group of companies";

[Definition inserted by section 6(1)(d) of the Revenue Laws Amendment Act, 2002 (Act No. 74 of 2002), deemed to have come into operation on 6 November 2002]

 

"co-operative"

means any association of persons registered in terms of section 27 of the Co-operatives Act, 1981 (Act No. 91 of 1981) or section 7 of the Co-operatives Act, 2005 (Act No. 14 of 2005);

[Definition substituted by section 3(1)(c) of the Taxation Laws Amendment Act, 2007 (Act No. 8 of 2007), deemed to have come into operation on 1 January 2007]

 

"Copyright Act"

means the Copyright Act, 1978 (Act No. 98 of 1978);

[Definition inserted by section 4(1)(m) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"date of deep level production"

[Definition deleted by section 2(1)(c) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)];

 

"date of assessment"

[Definition deleted by section 271, read with paragraph 23(d) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011);

 

"date of sequestration"

means—

[Definition inserted by section 12(1)(b) of  the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003)]

 

"dependant"

[Definition deleted by section 2(b) of the Income Tax Act, 1988 (Act No. 90 of 1988)]

 

"depreciable asset"

means an asset as defined in paragraph 1 of the Eighth Schedule (other than trading stock and any debt), in respect of which a deduction or allowance determined wholly or partly with reference to the cost or value of that asset is allowable in terms of this Act for purposes other than the determination of any capital gain or capital loss;

[Definition substituted by section 5(1)(a) of  the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007)]

 

"designated country"

[Definition deleted by section 12(1)(c) of  the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003) - effective 1 June 2004]

 

"Designs Act"

means the Designs Act, 1993 (Act No. 195 of 1993);

[Definition inserted by section 4(1)(n) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"director"

in relation to a close corporation, means any person who in respect of such close corporation holds any office or performs any functions similar to the office or functions of a director of a company other than a close corporation;

[Definition inserted by section 2(1)(a) of the Income Tax Act, 1985 (Act No. 96 of 1985)]

 

"dividend"

means any amount, other than a dividend consisting of a distribution of an asset in specie declared and paid as contemplated in section 31(3), transferred or applied by a company that is a resident for the benefit or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied—

[Words preceding paragraph (a) substituted by section 1(1)(b) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]

that company, but does not include any amount so transferred or applied to the extent that the amount so transferred or applied—

[Definition substituted by section 2(1)(a) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, 15 January 2020]

 

"domestic company"

[Definition deleted by section 2(a) of the Revenue Laws Amendment Act, 2019 (Act No. 59 of 2000)]

 

"domestic treasury management company"

means a company—

[Definition substituted by section 2(1)(b) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, dated 15 January 2020]

 

"entertainment expenditure"

[Definition deleted by section 2(1)(j) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]

 

"equity share"

means any share in a company, excluding any share that, neither as respects dividends nor as respects returns of capital, carries any right to participate beyond a specified amount in a distribution;

[Definition substituted by section 7(1)(i) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]

 

"Estate Duty Act"

means the Estate Duty Act, 1955 (Act No. 45 of 1955);

[Definition inserted by section 1(1)(i) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

 

"executor"

means any person to whom letters of administration have been granted by a Master or an Assistant Master of the High Court appointed under the Administration of Estates Act, 1965 (Act No. 66 of 1965), in respect of the estate of a deceased person under any law relating to the administration of estates, and includes a person acting or authorised to act under letters of administration granted outside the Republic but signed and sealed by such a Master or Assistant Master for use within the Republic and, in any case where the estate is not required to be administered under the supervision of such a Master or Assistant Master, the person administering the estate;

[Definition substituted by section 2(1)(f) of the Income Tax Act, 1997 (Act No. 28 of 1997)]

 

"external company"

[Definition deleted by section 2(b) of the Revenue Laws Amendment Act, 2000 (Act No. 59 of 2000)]

 

"financial instrument"

includes—

[Paragraph (a) substituted by section 7(1)(j) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 January 2012]

[Paragraph (c) substituted by section 3(1)(a) of the Revenue Laws Amendment Act (Act No. 32 of 2004)

(f)        any crypto asset;

[Paragraph (f) substituted by section 2(1)(c) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021]

 

"Financial Markets Act"

means the Financial Markets Act, 2012 (Act No. 19 of 2012);

[Definition inserted by section 4(1)(p) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 3 June 2013]

 

"Financial Sector Conduct Authority"

means the Financial Sector Conduct Authority as defined in section 1 of the Financial Sector Regulation Act;

[Definition inserted by section 1(1)(d) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]

 

"Financial Sector Regulation Act"

means the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017);

[Definition inserted by section 1(1)(g) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]

 

"Financial Services Board"

[Definition deleted by section 1(1)(e) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]

 

"Financial Services Board Act"

[Definition deleted by section 1(1)(e) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]

 

"financial year"

in relation to any company, means—

[Definition substituted by section 2(1)(a) of the Income Tax Act, 1983 (Act No. 94 of 1983)]

 

"foreign company"

means any company which is not a resident;

[Definition inserted by section 6(1)(h) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 January 2011]

 

"foreign dividend"

means any amount that is paid or payable by a foreign company in respect of a share in that foreign company where that amount is treated as a dividend or similar payment by that foreign company for the purposes of the laws relating to—

but does not include any amount so paid or payable that—

[Paragraph (i) substituted by section 1(1)(a) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]

[Paragraph (iii) inserted by section 2(1)(g) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - deemed to have come into operation on 1 January 2011]

[Definition substituted by section 7(1)(k) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 January 2011]

 

"foreign equity instrument"

[Definition deleted by section 4(1)(q) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"foreign investment entity"

means any person other than a natural person—

which amounts, financial instruments and rights are held by that person for investment purposes;

[Definition inserted by section 2(1)(h) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2013]

 

"foreign partnership"

in respect of any year of assessment, means any partnership, association, body of persons or entity formed or established under the laws of any country other than the Republic if—

[Paragraph (a)(ii) substituted by section 3(1)(g) of Act No. 25 of 2015, deemed to have come into operation on 31 December 2015]

(i)        any amount—

the partnership, association, body of persons or entity is allocated concurrently with the receipt, accrual or incurral to the members of that partnership, association, body of persons or entity in terms of an agreement between those members; and

[Definition substituted by section 7(1)(l) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 October 2011 in the case of any foreign partnership that is established or formed before 24 August 2010, and as from the date of establishment or formation in the case of any foreign partnership that is established or formed on or after 24 August 2010]

 

"foreign return of capital"

means any amount that is paid or payable by a foreign company in respect of any share in that foreign company where that amount is treated as a distribution or similar payment (other than an amount that constitutes a foreign dividend) by that foreign company for the purposes of the laws relating to—

but does not include any amount so paid or payable to the extent that the amount so paid or payable—

[Definition substituted by section 2(1)(i) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2011]

 

"foreign tax year"

in relation to a foreign company, means any year or period of reporting for foreign income tax purposes by that company or, if that company is not subject to foreign income tax, any annual period of financial reporting by that company;

[Definition inserted by section 2(1)(j) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2012]

 

"functional currency"

in relation to—

[Definition inserted by section 6(1)(k) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 January 2011]

 

"government grant

[Definition deleted by section 2(1)(k) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012)]

 

"government scrapping payment"

[Definition deleted by section 2(1)(l) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2013]

 

"gross income"

in relation to any year or period of assessment, means—

[Paragraph (ii) substituted by section 2(1)(n) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2012]

during such year or period of assessment, excluding receipts or accruals of a capital nature, but including, without in any way limiting the scope of this definition, such amounts (whether of a capital nature or not) so received or accrued as are described hereunder, namely—

[Paragraph (a) substituted by section 1(1)(b) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]

[Paragraph (b) substituted by section 5(1)(q) of  the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007) - effective 13 September 2007]

[Words preceding proviso substituted by 5(1)(b) of The Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016) - effective 1 March 2017]

[Paragraphs (c)(iii), (iv), (v) and (vi) deleted by the Taxation Laws Amendment Act, (Act No. 30 of 2002]

[Paragraph (c)(vii) inserted by section 4(1)(d) of the Taxation Laws Amendment Act, 2021 (Act No. 20 of 2021), Notice No. 770, GG45787, dated 19 January 2022 - effective 1 March 2022 and applies in respect of years of assessment commencing on or after that date (section 4(3))]

[Paragraph (cA)(iii) substituted by section 4(1)(e) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008) - effective 1 March 2009]

[Paragraph (cA)(iv) substituted by section 4(1)(e) of Act No. 60 of 2008 - effective 1 March 2009]

as consideration for any restraint of trade imposed on such person.

[Paragraph (cA) substituted by section 7(1)(o) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]

[Paragraph (cB) inserted by section 1(1)(l) of Act No. 43 of 2014 - effective 1 March 2015]

[Paragraph (d)(ii) substituted by section 2(1)(o) of Act No. 22 of 2018 - effective 1 March 2012]

for the benefit of the person, or dependant or nominee of the person, by—

Provided that—

[Paragraph (d) substituted by section 7(1)(p) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012]

[Paragraph (e) substituted by section 7(1)(q) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011)]

[Paragraph (eA)(i) substituted by section 1(1)(c) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023 - deemed to have come into operation on 1 March 2021 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (eA)(ii) substituted by section 1(1)(c) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023 - deemed to have come into operation on 1 March 2021 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (eA)(iii) substituted by section 1(1)(c) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023 - deemed to have come into operation on 1 March 2021 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

an amount equal to two-thirds—

[Paragraph (eA)(iii)(bb) substituted by section 17(1)(b) of Act No. 60 of 2011 - effective 12 December 2001]

[Paragraph (eA)(cc) inserted by section 19(1)(k) of the Taxation Laws Amendment Act, 1998 (Act No. 30 of 1998) - effective 29 June 1998]

Provided that the Commissioner may, on application by a fund, in particular circumstances, increase the proportion of one-third contemplated in subparagraph (i) up to a maximum of one-half on the following conditions:

[Paragraph (eA) substituted by section 5(1)(c) of Act No. 15 of 2016]

[Paragraph (eD) inserted by section 1(1)(a) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024  - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section (2))]

[Paragraph (g)(iii) substituted by section 4(1)(r) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

[Paragraph (g) substituted by section 7(1)(r) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011)]

[Paragraph (gA) substituted by section 7(1)(s) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]

[Paragraph (h)(ii) substituted by section 2(1)(g) of Act No. 113 of 1993]

[Paragraph (i) substituted by section 2(1)(g) of the Income Tax Act, 1984 (Act No. 121 of 1984)]

[Paragraph (j) substituted by section 2(b) of the Income Tax Act, 1992 (Act No. 141 of 1992)]

[Paragraph (jA) substituted by section 7(1)(t) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]

[Paragraph (k) substituted by section 7(1)(u) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 January 2011]

[Paragraph (l) substituted by section 2(1)(h) of Act No. 113 of 1993]

[Paragraph (lA) substituted by section 6(1)(f) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)]

[Paragraph (lC) inserted by section 5(1)(d) of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016)]

[Paragraph (m) substituted by section 2(1)(d) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021]

[Paragraph (n) substituted by section 2(1)(c) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019], GG 42951, dated 15 January 2020]

Provided that where during any year of assessment a person has become entitled to any amount which is payable on a date or dates falling after the last day of such year, that amount shall be deemed to have accrued to the person during such year;

[Definition substituted by section 4(1)(s) and (t) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"group of companies"

means two or more companies in which one company (hereinafter referred to as the "controlling group company") directly or indirectly holds shares in at least one other company (hereinafter referred to as the "controlled group company"), to the extent that—

[Paragraph (a) substituted by section 7(1)(w) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]

[Definition substituted by section 3(1)(h) of the Revenue Laws Second Amendment Act, 2005 (Act No. 32 of 2005) - effective 8 November 2005]

 

"headquarter company"

in respect of any year of assessment means a company contemplated in section 9I(1) in respect of which an election has been made in terms of that section;

[Definition substituted by section 7(1)(x) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 January 2011]

 

"hotel keeper"

means any person carrying on the business of hotel keeper or boarding or lodging house keeper where meals and sleeping accommodation are supplied to others for money or its equivalent;

[Definition substituted by section 2(b) of the Income Tax Act, 1996 (Act No. 36 of 1996)]

 

"identical security"

means in respect of a listed security, as defined in the Securities Transfer Tax Act, 2007 (Act No. 25 of 2007), that is the subject of a securities lending arrangement—

[Paragraph (b) substituted by section 1(1)(d) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]

 

"identical share"

means in respect of a share—

[Paragraph (b) substituted by section 2(1)(d) of the Taxation Laws Amendment Act, 2018 (Act No. 34 of 2019), GG 42951, dated 15 January 2020]

[Definition inserted by section 3(1)(h) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 January 2016]

 

"IFRS"

means the International Financial Reporting Standards issued by the International Accounting Standards Board;

[Definition inserted by section 2(1)(r) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2013]

 

"income"

means the amount remaining of the gross income of any person for any year or period of assessment after deducting therefrom any amounts exempt from normal tax under Part I of Chapter II;

 

"insolvent estate"

means an insolvent estate as defined in section 2 of the Insolvency Act, 1936 (Act No. 24 of 1936);

[Definition inserted by section 2(1)(i) of the Income Tax Act, 1997 (Act No. 28 of 1997)]

 

"Insurance Act"

means the Insurance Act, 2017;

[Definition inserted by section 1(1)(h) of the Taxation Laws Amendment Act,  2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]

 

"international headquarter company"

[Definition deleted by section 12(1)(g) of  the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003) - effective 1 June 2004]

 

"JSE Limited Listings Requirements"

means the JSE Limited Listings Requirements, 2003, made by the JSE Limited in terms of section 11 of the Financial Markets Act;

[Definition substituted by section 4(1)(u) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 3 June 2013]

 

"legacy retirement annuity policy"

means any policy held by a retirement annuity fund entered into before 1 September 2024 with a pre-universal life or universal life construct, subject to such conditions that the Financial Sector Conduct Authority may determine;

[Definition inserted by section 1(1)(b) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024  - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"linked unit"

means a unit comprising a share and a debenture in a company, where that share and that debenture are linked and are traded together as a single unit;

[Definition inserted by section 4(1)(v) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 April 2013]

 

"liquidation and distribution account"

means the account required to be submitted by an executor to a Master in accordance with section 35 of the Administration of Estates Act, 1965 (Act No. 66 of 1965);

[Definition inserted by section 4(1)(e) of the Taxation Laws Amendment Act, 2021 (Act No. 20 of 2021), Notice No. 770, GG45787, dated 19 January 2022 - effective 1 March 2022 and applies in respect of liquidation and distribution accounts finalised on or after that date (section 4(4))]

 

"listed company"

means a company where its shares or depository receipts in respect of its shares are listed on—

[Paragraph (a) substituted by section 4(1)(w) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 3 June 2013]

[Definition inserted by section 6(1)(l) of the Revenue Laws Amendment Act, 2002 (Act No. 74 of 2002) - effective 13 December 2002]

 

"listed share"

means a share that is listed on an exchange as defined in section 1 of the Financial Markets Act and licensed under section 9 of that Act;

[Definition amended by section 4(x) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 3 June 2013]

 

"living annuity"

means a right of a member or former member of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund, or his or her dependant or nominee, or any subsequent nominee, to an annuity purchased from a person or provided by any fund on or after the retirement date of that member or former member in respect of which—

[Words preceding Paragraph (a) substituted by section 1(1)(e) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]

[Paragraph (a) substituted by section 4(1)(h) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008)]

[Paragraph (d) substituted by section 4(1)(i) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008)]

[Paragraph (e) substituted by section 7(1)(y) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012]

[Paragraph (eA) inserted by section 2(1)(f) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - comes into operation on 1 March 2021 (section 2(2)]

[Definition substituted by section 4(1)(g) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008)]

 

"local authority"

[Definition deleted by section 3(1)(h) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]

 

"Long-term Insurance Act"

means the Long-term Insurance Act, 1998 (Act No. 52 of 1998);

[Definition substituted by section 4(y) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"low-cost residential unit"

means—

[Paragraph (a)(i) substituted by section 3(1)(a) of Act No. 23 of 2013 - effective 1 April 2013]

[Paragraph (b)(i) substituted by section 3(1)(b) of Act No. 23 of 2013 - effective 1 April 2013]

Provided that for the purposes of paragraphs (a)(ii) and (b)(ii), the cost is deemed to be increased by 10 per cent in each year succeeding the year in which the apartment or building is first brought into use;

[Definition inserted by section 4(1)9j) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008) - effective 21 October 2008]

 

"lump sum benefit"

means a retirement fund lump sum benefit or retirement fund lump sum withdrawal benefit;

[Definition inserted by section 7(1)(n) of the Taxation Laws Amendment Act, 2009 (Act No. 17 of 2009)]

 

"married"

[Definition deleted by section 5(e) of the Taxation Laws Amendment Act, 2001 (Act No. 5 of 2001)]

 

"married person"

[Definition deleted by section 2(b) of the Income Tax, 1995 (Act No. 21 of 1995)]

 

"married woman"

[Definition deleted by section 2(1)(p) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)];

 

"Medical Schemes Act"

means the Medical Schemes Act, 1998 (Act No. 131 of 1998);

[Definition inserted by section 4(1)(z) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"member’s interest in the retirement component"

includes—

as determined in terms of the rules of the fund;

[Definition inserted by section 1(1)(c) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024  - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"member’s interest in the savings component"

includes—

as determined in terms of the rules of the fund;

[Definition inserted by section 1(1)(c) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024  - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"member’s interest in the vested component"

includes—

as determined in terms of the rules of the fund;

[Definition inserted by section 1(1)(c) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024  - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"Mineral and Petroleum Resources Development Act"

means the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002);

[Definition inserted by section 4(1)(z) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"mining for gold" or "to mine for gold"

includes mining for uranium or to mine for uranium;

 

"mining operations" and "mining"

include every method or process by which any mineral is won from the soil or from any substance or constituent thereof.

[Definition substituted by section 3(1)(i) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006) - effective 2 November 1006]

 

"Minister"

means the Minister of Finance;

[Definition inserted by section 13(1)(i) of the Taxation  Laws Amendment Act, 2000 (Act No. 30 of 2000)]

 

"municipality"

means a municipality which is within a category listed in section 155(1) of the Constitution of the Republic of South Africa, 1996, and which is an organ of state within the local sphere of government exercising legislative and executive authority within an area determined in terms of the Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998);

[Definition inserted by section 3(1)(j) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]

 

"municipal value"

means an amount determined in terms of section 46 of the Local Government: Municipal Property Rates Act, 2004 (Act No. 6 of 2004);

[Definition inserted by section 4(1)(zA) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 March 2014]

 

"mutual building society"

[Definition deleted by section 2(1)(q) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]

 

"natural oil"

means any liquid or solid hydrocarbon or combustible gas existing in a natural condition in the earth's crust, but does not include coal or bituminous shales or other stratified deposits from which oil can be obtained by destructive distillation, or gas arising from marsh or other surface deposits;

[Definition inserted by section 4(d) of the Income Tax Act, 1963 (Act No. 72 of 1963)]

 

"neighbouring country"

means Botswana, eSwatini, Lesotho and Namibia;

[Definition substituted by section 3 of the Tax Administration Laws Amendment Act, 2022 (Act No. 16 of 2022), Notice No. 1542, GG47827, dated 5 January 2023]

 

"new deep level gold mine"

[Definition deleted by section 2(c) of the Income Tax Act, 1989 (Act No. 70 of 1989)]

 

"new gold mine"

[Definition deleted by section 2(c) of the Income Tax Act, 1989 (Act No. 70 of 1989)]

 

"nominal value"

[Definition deleted by section 6(1)(q) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 January 2011]

 

"normal retirement age"

means—

[Definition inserted by section 2(1)(r) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]

 

"normal tax"

means income tax referred to in section 5(1);

[Definition inserted by section 271, read with paragraph 23(e) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

"officer"

means, where used in the context of a person who is engaged by the Commissioner in carrying out the provisions of this Act, a SARS official as defined in section 1 of the Tax Administration Act;

[Definition inserted by section 271, read with paragraph 23(e) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

"official rate of interest"

means—

Provided that where a new repurchase rate or equivalent rate is determined, the new rate of interest applies for the purposes of this definition from the first day of the month following the date on which that new repurchase rate or equivalent rate came into operation;

[Definition substituted by section 1(1)(i) of  the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]

 

"other deep level gold mine"

[Definition deleted by section 2(1)(s) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]

 

"Patents Act"

means the Patents Act, 1978 (Act No. 57 of 1978);

[Definition inserted by section 4(1)(zB) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"pension fund"

means—

(a)        

[Paragraph (a)(i) substituted by section 74(1)(a) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - deemed to have come into operation on 8 January 2016 (section 74(2))]

[Paragraph (a)(iii)(aa) substituted by section 3(1)(m) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]

[Paragraph (a)(iii)(bb) substituted by section 3(1)(l) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]

[Paragraph (a) substituted by section 3(b) of Act No. 19 of 2001]

[Paragraph (b) amended by section 3(1)(m) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 March 2016]

[Proviso to Paragraph (c) deleted by section 1(1)(f) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]

[Paragraph (i) of the proviso substituted by section 1(1)(d) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024  - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Words preceding the proviso to paragraph (ii)(dd) substituted by section 1(1)(e) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024  - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

Provided that in determining the value of the retirement interest an amount calculated as follows must not be taken into account—

[Paragraph (ii)(dd)(A)(CC) substituted by section 1(c) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - deemed to have come into operation on 1 March 2022 and apply in respect of years of assessment commencing on or after that date (section 1(3))]

[Paragraph (ii)(dd)(B)(CC) substituted by section 1(d) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - deemed to have come into operation on 1 March 2022 and apply in respect of years of assessment commencing on or after that date (section 1(3))]

reduced proportionally by an amount permitted in terms of the Pension Funds Act to be deducted from the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on and after 1 March 2021: Provided further that in the case where the remaining balance is utilised to provide or purchase more than one annuity, the amount utilised to provide or purchase each annuity must exceed R165 000;

[Paragraph (ii)(dd) proviso substituted by section 4(1)(f) of the Taxation Laws Amendment Act, 2021 (Act No. 20 of 2021), Notice No. 770, GG45787, dated 19 January 2022 - comes into operation on 1 March 2022 and applies in respect of annuities purchased on or after that date (section 4(5))]

[Paragraph (ii)(gg) inserted by section 1(f) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - come into operation on 1 March 2024 and apply in respect of years of assessment commencing on or after that date (section 1(4))]

Provided further that a fund contemplated in paragraph (i) of the further proviso to the definition of "pension preservation fund" which is deemed to be approved or which is approved in terms of that definition or which fails to submit its rules as required by that paragraph is deemed with effect from the earlier of the date of the deemed approval or 30 September 2010 to be a fund which is not approved in terms of this definition;

Provided that in respect of any fund contemplated in paragraph (a) or (b)—

Provided further that the Commissioner may recognise a fund contemplated in paragraph (a), (b) or (d) in respect of any year of assessment if the Commissioner is satisfied that the rules of the fund provide that in determining the value of retirement interest, an amount calculated as follows must not be taken into account—

where applicable, reduced proportionally by any amount permitted to be deducted in terms of the Pension Funds Act from the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on or after 1 March 2021;

[Further proviso inserted by section 1(1)(g) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023 - comes into operation on 1 March 2023 and apply in respect of years of assessment commencing on or after that date (section 1(3))]

Provided further that the Commissioner may approve or recognise a fund contemplated in—

[Further proviso inserted by section 1(1)(f) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024  - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"Pension Funds Act"

means the Pension Funds Act, 1956 (Act No. 24 of 1956);

[Definition inserted by section 4(1)(zF) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"pension preservation fund"

means a pension fund organisation which is registered under the Pension Funds Act and which is approved by the Commissioner in respect of the year of assessment in question:

Provided that the Commissioner may approve a fund subject to such limitations and conditions as the Commissioner may determine, and shall not approve a fund in respect of any year of assessment unless the Commissioner is satisfied in respect of that year of assessment that the rules of the fund provide that—

[Paragraph (a)(i) substituted by section 3(1)(q) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 March 2019]

[Paragraph (a)(i)(aa) of the proviso substituted by section 1(1)(g) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024]

[Paragraph (a)(i)(bb) substituted by section 6(1)(s) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 March 2008]

[Paragraph (a)(i)(cc) substituted by section 7(1)(zB) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012]

[Paragraph (a)(ii)(bb) of the proviso substituted by section 1(1)(h) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024  - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (a)(iv) substituted by section 2(1)(l) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG 44083 dated 20 January 2021 - comes into operation on 1 March 2021 (section 2(2)]

[Paragraph (a)(v) of the proviso substituted by section 1(1)(i) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (a)(vi) substituted by section 1(1)(h) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]

[Words preceding paragraph (b)(i) of the proviso substituted by section 1(1)(j) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (b)(ii) substituted by section 2(1)(j) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG 44083, dated 20 January 2021 - comes into operation on 1 March 2021 (section 2(2)]

[Words preceding the proviso substituted by section 1(1)(i) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]

Provided that—

[Paragraph (c)(i) of the proviso substituted by section 1(1)(k) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (c)(ii) of the proviso substituted by section 1(1)(l) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (c)(iii) of the proviso substituted by section 1(1)(m) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (d) substituted by section 1(g) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - effective 22 December 2023]

[Words preceding Paragraph (e)(a) of the proviso substituted by section 1(1)(n) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

reduced proportionally by an amount permitted to be deducted in terms of the Pension Funds Act from the member’s individual account or minimum individual reserve of the provident fund or the provident preservation fund prior to, on or after 1 March 2021: Provided further that in the case where the remaining balance is utilised to provide or purchase more than one annuity, the amount utilised to provide or purchase each annuity must exceed R165 000: Provided further that the Commissioner may approve a fund in respect of any year of assessment, if the Commissioner is satisfied that the rules of the fund provide for the creation of the ‘savings component’, ‘retirement component’ and ‘vested component’ as defined in section 1;

[Further proviso inserted by section 1(1)(o) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

Provided further that—

[Definition substituted by section 4(1)(zG) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"permanent establishment"

means a permanent establishment as defined from time to time in Article 5 of the Model Tax Convention on Income and on Capital of the Organisation for Economic Co-operation and Development: Provided that in determining whether a qualifying investor in relation to a partnership, trust or foreign partnership has a permanent establishment in the Republic, any act of that partnership, trust or foreign partnership in respect of any financial instrument must not be ascribed to that qualifying investor;

[Definition section 6(1)(v) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 January 2011]

 

"person"

includes—

but does not include a foreign partnership.

[Definition substituted by section 6(1)(w) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)]

 

"portfolio of a collective investment scheme"

means any—

[Definition inserted by section 6(1)(x) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 January 2010]

 

"portfolio of a collective investment scheme in participation bonds"

means any portfolio comprised in any collective investment scheme in participation bonds contemplated in Part VI of the Collective Investment Schemes Control Act managed or carried on by any company registered as a manager under and for the purposes of that Part;

[Definition substituted by section 4(1)(K0 of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"portfolio of a collective investment scheme in property"

means any portfolio comprised in any collective investment scheme in property contemplated in Part V of the Collective Investment Schemes Control Act managed or carried on by any company registered as a manager under section 51 of that Act for the purposes of that Part;

[Definition substituted by section 4(1)(zK) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"portfolio of a collective investment scheme in securities"

means any portfolio comprised in any collective investment scheme in securities contemplated in Part IV of the Collective Investment Schemes Control Act managed or carried on by any company registered as a manager under section 42 of that Act for the purposes of that Part;

[Definition substituted by section 4(1)(zK) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"portfolio of a declared collective investment scheme"

means any portfolio comprised in any declared collective investment scheme contemplated in Part VII of the Collective Investment Schemes Control Act managed or carried on by any company registered as a manager under section 64 of that Act for the purposes of that Part;

[Definition substituted by section 4(1)(zK) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"portfolio of a hedge fund collective investment scheme"

means any portfolio held by any hedge fund business that qualifies as a declared collective investment scheme in terms of section 63 of the Collective Investment Schemes Control Act;

[Definition inserted by section 4(1)(zL) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 April 2015]

 

"post-1966 gold mine"

[Definition deleted by section 2(1)(c) of the Income Tax Act, 1991 (Act No. 129 of 1991)]

 

"post-1973 gold mine"

means an independent workable proposition in respect of which the State President or the Minister of Mines has, after 1 January 1974, on the recommendation of the Mining Leases Board signified in writing his decision to grant a lease of the right to mine for gold, and includes any other gold mine which, in the opinion of the Government Mining Engineer, is an independent workable proposition which was established as such after the said date;

[Definition inserted by section 4(1)(l) of the Income Tax Act, 1974 (Act No. 85 of 1974)]

 

"post-1990 gold mine"

means a gold mine—

[Definition substituted by section 1(1)(m) of Act No. 43 of 2014 - effective 1 May 2004]

 

"prescribed"

means prescribed or deemed to be prescribed by or under this Act;

 

"prescribed rate"

means the rate contemplated in section 189(3) of the Tax Administration Act;

[Definition substituted by section 271, read with paragraph 23(g) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

"provident fund"

means—

[Words preceding section 74(1)(d) proviso substituted by the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - deemed to have come into operation on 8 January 2016 (section 74(2))]

Provided that the Commissioner may approve a fund subject to such limitations or conditions as he may determine, and shall not approve a fund in respect of any year of assessment unless he is in respect of that year of assessment satisfied—

[Paragraph (i) of the proviso substituted by section 1(1)(p) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Words preceding paragraph (ii)(dd)(a) of the proviso substituted by section 1(1)(q) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (ii)(dd)(a)(CC) substituted by section 1(h) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - deemed to have come into operation on 1 March 2022 and apply in respect of years of assessment commencing on or after that date (section 1(3))]

[Paragraph (ii)(dd)(b)(CC) substituted by section 1(i) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - deemed to have come into operation on 1 March 2022 and apply in respect of years of assessment commencing on or after that date (section 1(3))]

reduced proportionally by an amount permitted in terms of the Pension Funds Act to be deducted from the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on and after 1 March 2021: Provided further that in the case where the remaining balance is utilised to provide or purchase more than one annuity, the amount utilised to provide or purchase each annuity must exceed R165 000;

Provided further that the Commissioner may approve or recognise a fund contemplated in—

[Further proviso inserted by section 1(1)(r) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (ii)(ff) inserted by section 1(j) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - come into operation on 1 March 2024 and apply in respect of years of assessment commencing on or after that date (section 1(4))]

[Paragraphs (a) and (b) of the proviso substituted by section 75(1)(c) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - deemed to have come into operation on 20 May 2016 (section 75(2))]

reduced by any amounts permitted in terms of any law to be deducted from the member's individual account of the provident fund;

[Paragraph (b) substituted by section 1(1)(c) of Act No. 2 of 2016 - effective 1 March 2019]

[Paragraph (c) substituted by section 3(1)(v) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015)]

Provided further that a fund contemplated in paragraph (i) of the further proviso to the definition of "provident preservation fund" which is deemed to be approved or which is approved in terms of that definition or which fails to submit its rules as required by that paragraph is deemed with effect from the earlier of the date of the deemed approval or 30 September 2010 to be a fund which is not approved in terms of this definition.

[Definition substituted by section 4(1)(zM) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

Provided further that the Commissioner may recognise a fund contemplated in paragraph (a), (b) or (c) in respect of any year of assessment if the Commissioner is satisfied that the rules of the fund provide that in determining the value of retirement interest an amount calculated as follows must not be taken into account—

where applicable, reduced proportionally by any amount permitted to be deducted in terms of the Pension Funds Act from the member’sindividual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on or after 1 March 2021;

[Further proviso inserted by section 1(1)(j) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023 - comes into operation on 1 March 2023 and apply in respect of years of assessment commencing on or after that date (section 1(3))]

 

"provident preservation fund"

means a pension fund organization which is registered under the Pension Funds Act and which is approved by the Commissioner in respect of the year of assessment in question: Provided that the Commissioner may approve a fund subject to such limitations and conditions as the Commissioner may determine, and shall not approve a fund in respect of any year of assessment unless the Commissioner is satisfied in respect of that year of assessment that the rules of the fund provide that—

[Words preceding paragraph (a)(i)(aa) of the proviso substituted by section 3(1)(w) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 March 2019]

[Paragraph (a)(i)(aa) of the proviso substituted by section 1(1)(s) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Words preceding paragraph (a)(ii)(aa) of the proviso substituted by section 3(1)(x) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 March 2019]

[Paragraph (a)(ii)(bb) of the proviso substituted by section 1(1)(t) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (a)(iv) substituted by section 2(1)(l) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - comes into operation on 1 March 2021 (section 2(2)]

[Paragraph (a)(v) of the proviso substituted by section 1(1)(u) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (a)(vi) substituted by section 1(1)(k) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023]

[Words preceding paragraph (b)(i) of the proviso substituted by section 1(1)(v) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (b)(i) substituted by section 3(1)(y) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 March 2019]

[Paragraph (b)(ii) substituted by section 2(1)(j) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021]

Provided that—

[Paragraph (c)(i) of the proviso substituted by section 1(1)(w) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (c)(ii) of the proviso substituted by section 1(1)(x) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (c)(iii) of the proviso substituted by section 1(1)(y) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date 1(section (2))]

[Paragraph (d) substituted by section 1(k) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - deemed to have come into operation on 1 March 2021 and apply in respect of years of assessment commencing on or after that date (section 1(5))]]

[Words preceding the proviso to Paragraph (e) substituted by section 1(1)(z) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

Provided that in determining the value of the retirement interest an amount calculated as follows must not be taken into account:

Provided further that in the case where the remaining balance is utilised to provide or purchase more than one annuity, the amount utilised to provide or purchase each annuity must exceed R165 000:

[Further proviso to Paragraph (e) substituted by section 1(l) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - deemed to have come into operation on 1 March 2021 and apply in respect of years of assessment commencing on or after that date (section 1(5))]

Provided further that the Commissioner may approve a fund in respect of any year of assessment, if the Commissioner is satisfied that the rules of the fund provide for the creation of the ‘savings component’, ‘retirement component’ and ‘vested component’ as defined in section 1;

[Further proviso to Paragraph (e) inserted by section 1(1)(zA) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

reduced proportionally by an amount permitted in terms of the Pension Funds Act to be deducted from the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on and after 1 March 2021: Provided further that in the case where the remaining balance is utilised to provide or purchase more than one annuity, the amount utilised to provide or purchase each annuity must exceed R165 000;

[Paragraph (e) substituted by section 4(1)(k) of the Taxation Laws Amendment Act, 2021 (Act No. 20 of 2021), Notice No. 770, GG45787, dated 19 January 2022 - comes into operation on 1 March 2022 and apply in respect of years of assessment commencing on or after that date (section 4(6))]

Provided further that—

[Definition substituted by section 4(1)(zP) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"Public Finance Management Act"

means the Public Finance Management Act, 1999 (Act No. 1 of 1999);

[Definition inserted by section 4(1)(zW) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"Public Private Partnership"

means a Public Private Partnership as defined in—

[Definition substituted by section 1(1)(n) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

 

"qualifying investor"

means a member of a partnership or foreign partnership or a beneficiary of a trust if the liability of the member or beneficiary to any creditor of the partnership, trust or foreign partnership is limited to the amount that the member or beneficiary has contributed or undertaken to contribute to the partnership, trust or foreign partnership, unless that member or beneficiary—

(b)        has the authority to act on behalf of—

(i)        the partnership or foreign partnership;

(ii)        the members of the partnership or foreign partnership; or

(iii)        the trust; or

(c)        renders any services to or on behalf of the partnership, trust or foreign partnership;

[Definition substituted by section 6(1)(zD) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 January 2011]

 

"qualifying statutory rate"

[Definition deleted by section 12(1)(h) of  the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003) - effective 1 June 2004]

 

"regional electricity distributor"

[Definition deleted by section 1(1)(o) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

 

"regulation"

means a regulation in force under this Act;

 

"REIT"

means a company—

[Paragraph (b) substituted by section 2(1)(o) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021]

 

"relative"

in relation to any person, means the spouse of that person or anybody related to that person or that person's spouse within the third degree of consanguinity, or any spouse of anybody so related, and for the purpose of determining the relationship between any child referred to in the definition of "child" in this section and any other person, that child shall be deemed to be related to the adoptive parent of that child within the first degree of consanguinity;

[Definition substituted by section 1(1)(v) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]

 

"remuneration proxy"

in relation to a year of assessment, means the remuneration, as defined in paragraph 1 of the Fourth Schedule, derived by an employee from an employer during the year of assessment immediately preceding that year of assessment, other than the cash equivalent of the value of a taxable benefit derived from the occupation of residential accommodation as contemplated in subparagraph (3) of paragraph 9 of the Seventh Schedule in the application of that subparagraph: Provided that—

[Words preceding proviso substituted by section 5(1)(h) of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016) - effective 1 March 2017]

 

"representative taxpayer"

means a natural person who resides in the Republic and—

[Words preceding paragraph (a) substituted by section 271, read with paragraph 23(g) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

[Paragraph (a) substituted  by section 1 of the Taxation Administration Laws Amendment Act, 2014 (Act No. 44 of 2014)]

[Paragraph (b) substituted  by section 271, read with paragraph 23(h) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

[Paragraph (c) substituted by section 2 of  the Tax Administration Laws Amendment Act, 2020 (Act No. 24 of 2020), GG44080, dated 20 January 2021]

[Paragraph (f) inserted by section 2(1)(l) of the Income Tax Act, 1997 (Act No. 28 of 1997)]

Provided that for the purposes of this definition income includes any amount received or accrued or deemed to have been received or accrued in consequence of the disposal of any asset envisaged in the Eighth Schedule;

[Definition substituted by section 271, read with paragraph 23(i) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

"Republic"

means the Republic of South Africa and, when used in a geographical sense, includes the territorial sea thereof as well as any area outside the territorial sea which has been or may be designated, under international law and the laws of South Africa, as areas within which South Africa may exercise sovereign rights or jurisdiction with regard to the exploration or exploitation of natural resources;

[Definition substituted by section 3(1)(o) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]

 

"resident"

means any—

[Paragraph (a)(ii)(aa) substituted by section 3(1)(i) of the Revenue Laws Second Amendment Act, 2005 (Act No. 32 of 2005) - effective 1 March 2006]

[Paragraph (a)(ii)(bb) substituted by section 3(1)(i) of the Revenue Laws Second Amendment Act, 2005 (Act No. 32 of 2005) - effective 1 March 2006]

in which case that person will be a resident with effect from the first day of that relevant year of assessment: Provided that—

[Paragraph (a)(ii)(A) substituted by section 3(1)(j) of Act No. 2005 - effective 1 July 2005]

[Paragraph (A(ii)(B) substituted by section 12(1)(t) and (j) of  the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003)]

[Paragraph (b) substituted by section 12(1)(l) of  the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003) - effective 1 June 2004]

but does not include any person who is deemed to be exclusively a resident of another country for purposes of the application of any agreement entered into between the governments of the Republic and that other country for the avoidance of double taxation: Provided that where any person that is a resident ceases to be a  resident during a year of assessment, that person must be regarded as not being a resident from the day on which that person ceases to be a resident: Provided further that in determining whether a person that is a foreign investment entity has its place of effective management in the Republic, no regard must be had to any activity that—

 

"residential unit"

means a building or self-contained apartment mainly used for residential accommodation, unless the building or apartment is used by a person in carrying on a trade as an hotel keeper;

[Definition inserted by section 4(1)(w) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008) - effective 21 October 2008]

 

"retirement annuity fund"

means any fund (other than a pension fund, provident fund or benefit fund) which is approved by the Commissioner in respect of the year of assessment in question and, in the case of any such fund established on or after 1 July 1986, is registered under the provisions of the Pension Funds Act:

Provided that the Commissioner may approve a fund subject to such limitations or conditions as he may determine, and shall not approve any fund in respect of any year of assessment unless he is in respect of that year of assessment satisfied—

[Paragraph (a) of the proviso substituted by section 1(1)(zB) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Words preceding paragraph (b)(ii)(a) of the proviso substituted by section 1(1)(zC) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

reduced proportionally by an amount permitted to be deducted in terms of the Pension Funds Act from the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on and after 1 March 2021.

[Paragraph (b)(ii)(a)(b) substituted by section 75(1)(e) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - deemed to have come into operation on 20 May 2016 (section 75(2))]

[Paragraph (b)(v) substituted by section 7(1)(zA) of the Taxation Laws Amendment Act, 2009 (Act No. 17 of 2009)]

[Paragraph (b)(x)(dd) of the proviso substituted by section 1(1)(zD) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

[Paragraph (b)(xi)(bb) substituted by section 2(1)(zB) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]

(aa)        as is contemplated in subparagraph (ii);

[Paragraph (b)(xii)(bb) substituted by section 1(m) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - deemed to have come into operation on 1 March 2023 and applies in respect of years of assessment commencing on or after that date (section 1(6))]

[Paragraph (b)(xii)(cc) substituted by section 6(1)(zE) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 March 2009]

[Paragraph (b)(xii)(dd) substituted by section 4(1)(zZd) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

[Paragraph (b)(xii)(ee) substituted by section 7(1)(zC) of the Taxation Laws Amendment Act, 2009 (Act No. 17 of 2009)]

no member's rights to benefits shall be capable of surrender, commutation or assignment or of being pledged as security for any loan;

(xiii)        that the Commissioner shall be notified of all amendments of the rules; and

[Definition substituted by section 4(1)(zZb) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

Provided further that the Commissioner may approve a fund in respect of any year of assessment, if the Commissioner is satisfied that the rules of the fund provide for the creation of the ‘savings component’, ‘retirement component’ and ‘vested component’ as defined in section 1;

[Further proviso inserted by section 1(1)(zE) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"retirement component"

means a component established in terms of the rules of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for a person who is a member of that fund:

Provided that the rules of the fund provide that—

Provided that this provision shall not apply to a ‘legacy retirement annuity policy’ as defined in section 1 (that has been exempted from this provision, subject to the conditions that may be required by the Financial Sector Conduct Authority), a ‘beneficiary fund’, ‘unclaimed benefit fund’ and ‘pensioner’ as defined in section 1 of the Pension Funds Act, and any person who is or was a member of a provident fund or provident preservation fund and who was 55 years of age or older on 1 March 2021, unless such person has elected to contribute to the retirement component:

Provided further that in determining the value of the member’s interest in the retirement component calculated together with two-thirds of the member’s interest in the vested component an amount calculated as follows must not be taken into account:

[Definition inserted by section 1(1)(zF) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"retirement date"

means the date on which—

[Paragraph (a) substituted by section 1(1)(w) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019 - effective 1 March 2018 (section 1(4)]

 

"retirement-funding employment"

[Definition deleted by section 4(1)(zZe) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 March 2015]

 

"retirement fund lump sum benefit"

means an amount determined in terms of paragraph 2(1)(a) or (c) of the Second Schedule;

[Definition amended by section 2(1)(j)  of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017) - effective 1 March 2018]

 

"retirement fund lump sum withdrawal benefit"

means an amount determined in terms of paragraph 2(1)(a) or (c) of the Second Schedule;

[Definition substituted by section 2(1)(j)  of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017) - effective 1 March 2018]

 

"retirement interest"

means—

[Definition substituted by section 1(1)(zG) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"return"

means a return as defined in section 1 of the Tax Administration Act;

[Definition inserted by section 271, read with paragraph 23(j) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

"return of capital"

means any amount transferred by a company that is a resident for the benefit or on behalf of any person in respect of any share in that company to the extent that that transfer results in a reduction of contributed tax capital of the company, whether that amount is transferred—

that company, but does not include any amount so transferred to the extent that the amount so transferred constitutes—

[Paragraph (b)(ii) substituted by section 2(1)(g) of  the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, dated 15 January 2020 - deemed to come into operation on 1 March 2019 (Section 2(2)]

 

"savings component"

means a component established in terms of the rules of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for a person who is a member of that fund:

Provided that the rules of the fund provided that—

Provided further that—

Provided that—

Provided further that this definition shall not apply to a ‘legacy retirement annuity policy’ as defined in section 1, that has been approved for exemption by the Financial Sector Conduct Authority, a ‘beneficiary fund’, ‘unclaimed benefit fund’ and ‘pensioner’ as defined in section 1 of the Pension Funds Act, and any person who is or was a member of a provident fund or provident preservation fund and who is or was 55 years of age or older on 1 March 2021, unless such person has elected to contribute to the ‘savings component’

[Definition inserted by section 1(1)(zH) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"savings withdrawal benefit"

means a portion of the member’s share of the value in a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund that the member has elected to withdraw from the portion of his or her share allocated to the savings component provided by that fund before termination of membership of the fund:

Provided that—

Provided that where a member terminates their membership in their respective funds within any year of assessment and such member has made a withdrawal from that fund as contemplated in paragraphs (a) or (b) and the value of the member’s interest in the savings component is less than R2 000, such member may be allowed a second withdrawal of the total balance in the savings component;

[Definition inserted by section 1(1)(zH) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"scientific research"

[Definition deleted by section 12(1)(m) of  the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003)]

 

"Secretary"

[Definition deleted by section 2(1)(e) of Act No. 104 of 1980]

 

"securities lending arrangement"

means a "lending arrangement" as defined in the Securities Transfer Tax Act, 2007 (Act No. 25 of 2007);

[Definition substituted by section 4(1)(z) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008)]

 

"severance benefit"

means any amount (other than a lump sum benefit or an amount contemplated in paragraph (d)(ii) or (iii) of the definition of "gross income") received by or accrued to a person by way of a lump sum from or by arrangement with the person’s employer or an associated institution in relation to that employer in respect of the relinquishment, termination, loss, repudiation, cancellation or variation of the person’s office or employment or of the person’s appointment (or right or claim to be appointed) to any office or employment, if—

unless, where the person’s employer is a company, the person at any time held more than five per cent of the issued shares or members’ interest in the company:

[Paragraph (c) substituted by section 7(1)(zL) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]

Provided that any such amount which becomes payable in consequence of or following upon the death of a person must be deemed to be an amount which accrued to such person immediately prior to his or her death;

[Definition substituted by section 7(1)(zK) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective from 1 March 2012]

 

"share"

means, in relation to any company, any unit into which the proprietary interest in that company is divided;

[Definition substituted by section 2(1)(z) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2013]

 

"Share Blocks Control Act"

means the Share Blocks Control Act, 1980 (Act No. 59 of 1980);

[Definition inserted by section 1(1)(r) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]

 

"shareholder"

[Definition deleted by section 7(1)(zO) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]

 

"Short-term Insurance Act"

means the Short-term Insurance Act, 1998 (Act No. 53 of 1998);

[Definition inserted by section 4(1)(zZf) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"small business funding entity"

means any entity, approved by the Commissioner in terms of section 30C;

[Definition inserted by section 1(1)(s) of Act No. 43 of 2014 - effective 1 March 2015]

 

"small, medium or micro-sized enterprise"

means any—

[Definition inserted by section 1(1)(s) of Act No. 43 of 2014 - effective 1 March 2015]

 

"South African company"

[Definition deleted by section 2(i) of the Revenue Laws Amendment Act, 2000 (Act No. 59 of 2000)]

 

"South African Reserve Bank"

means the central bank of the Republic regulated in terms of the South African Reserve Bank Act, 1989 (Act No. 90 of 1989);

[Definition inserted by section 4(1)(zZg) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"South African Revenue Service"

means the South African Revenue Service established by section 2 of the South African Revenue Service Act, 1997;

[Definition inserted by section 3(1)(k) of the Revenue Laws Second Amendment Act, 2005 (Act No. 32 of 2005)]

 

"specified date"

in relation to any company, means—

[Definition substituted by section 1(b) of Act No. 6 of 1963]

 

"specified period"

in relation to a year of assessment of any company commencing on or after 1 April 1977, means—

Provided that where by reason of the amalgamation under section 94 of the Co-operative Societies Act, 1939 (Act No. 29 of 1939), of two or more agricultural co-operatives (as defined in section 27(9) of this Act), the assets and liabilities of such co-operatives have vested in a new agricultural co-operative (as so defined), the Commissioner may, having regard to the circumstances of the case, direct that the specified period of each of the co-operatives which have so amalgamated, as applicable in relation to the final year of assessment of the co-operative in question be extended so as to end on such day as the Commissioner may determine;

[Definition substituted by section 3(1)(e) of Act No. 104 of 1979]

 

"spot rate"

means the appropriate quoted exchange rate at a specific time by any authorised dealer in foreign exchange for the delivery of currency.

[Definition inserted by section 3(1)(l) of the Revenue Laws Second Amendment Act, 2005 (Act No. 32 of 2005) - effective 8 November 2005]

 

"spouse"

in relation to any person, means a person who is the partner of such person—

[Paragraph (c) substituted by section 3(1)(zE) of Act No. 25 of 2015]

and "married", "husband" or "wife" shall be construed accordingly: Provided that a marriage or union contemplated in paragraph (b) or (c) shall, in the absence of proof to the contrary, be deemed to be a marriage or union out of community of property;

[Definition substituted  by section 2(1)(zB) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 March 2012]

 

"tax"

means tax or a penalty imposed in terms of this Act;

[Definition substituted by section 271, read with paragraph 23(k) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

"Tax Administration Act"

means the Tax Administration Act, 2011 (Act No. 28 of 2011);

[Definition substituted by section 4(1)(zZi) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"tax benefit"

includes any avoidance, postponement or reduction of any liability for tax;

[Definition inserted by section 6(1)(zH) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)]

 

"taxable amount"

[Definition deleted by section 2(1)(f) of Act No. 104 of 1980]

 

"taxable capital gain"

means an amount determined in terms of paragraph 10 of the Eighth Schedule;

[Definition inserted by section 5(k) of Act No. 104 of 1980

 

"taxable income"

means the aggregate of—

[Definition substituted by section 5(l) of the Taxation Laws Amendment Act, 2001 (Act No. 5 of 2001)]

 

"taxpayer"

means any person chargeable with any tax leviable under this Act;

[Definition substituted by section 271, read with paragraph 23(m) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

"territory"

[Definition deleted by section 2(j) of the Revenue Laws Amendment Act, 2000 (Act No. 59 of 2000)]

 

"this Act"

includes the regulations;

 

"total retirement contribution"

means any amount contributed to any pension fund, provident fund or retirement annuity fund in terms of the rules of that fund on or after 1 September 2024 by a person who is a member of that fund or any other person on behalf of that member, excluding any charges or premiums thereon;

[Definition inserted by section 1(1)(zI) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"trade"

includes every profession, trade, business, employment, calling, occupation or venture, including the letting of any property and the use of or the grant of permission to use any patent as defined in the Patents Act or any design as defined in the Designs Act or any trade mark as defined in the Trade Marks Act or any copyright as defined in the Copyright Act or any other property which is of a similar nature;

[Definition substituted by section 4(1)(zZj) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"Trade Marks Act"

means the Trade Marks Act, 1993 (Act No. 194 of 1993);

[Definition inserted by section 4(1)(zZk) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"trading stock"

as defined in section 24I(1);

[Definition substituted by section 6(1)(zI) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 2 November 2010]

 

"trust"

means any trust fund consisting of cash or other assets which are administered and controlled by a person acting in a fiduciary capacity, where such person is appointed under a deed of trust or by agreement or under the will of a deceased person;

[Definition inserted by section 2(i) of the Income Tax Act, 1992 (Act No. 141 of 1992)]

 

"trustee"

in addition to every person appointed or constituted as such by act of parties, by will, by order or declaration of court or by operation of law, includes an executor or administrator, tutor or curator, and any person having the administration or control of any property subject to a trust, usufruct, fideicommissum or other limited interest or acting in any fiduciary capacity or having, either in a private or in an official capacity, the possession, direction, control or management of any property of any person under legal disability;

 

"Value-Added Tax Act"

means the Value-Added Tax Act, 1991 (Act No. 89 of 1991);

[Definition inserted by section 4(1)(zZl) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

 

"vested component"

means a component established in terms of the rules of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for a person who is a member of that fund:

Provided that the rules of the fund provide that—

Provided that where the above-mentioned member has elected to make contributions to this component on or after 1 September 2024, that member may not be allowed to make contributions to the savings component or the retirement component;

[Definition inserted by section 1(1)(zJ) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]

 

"water services provider"

means a person who provides water supply services and sanitation services and who is—

[Paragraph (a) substituted by section 4(1)(zZm) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]

[Paragraph (b) substituted by section 3(1)(m) of the Taxation Laws Amendment Act, 2007 (Act No. 8 of 2007) - effective 1 January 2007]

[Definition inserted by section 3(1)(s) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]

 

"withdrawal interest"

means the value of the member’s share of the pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund value, as determined in terms of the rules of the fund on the date on which the member elects to withdraw due to an event other than the member attaining normal retirement age;

[Definition substituted by section 2(1)(h) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, dated 15 Janaury 2020 - effective 1 March 2019 (Section 2(2)]

 

"year of assessment"

means any year or other period in respect of which any tax or duty leviable under this Act is chargeable, and any reference in this Act to any year of assessment ending on the last or the twenty-eighth or the twenty-ninth day of February shall, unless the context otherwise indicates, in the case of a company or a portfolio of a collective investment scheme in securities, be construed as a reference to any financial year of that company or portfolio ending during the calendar year in question.

[Definition substituted by section 7(1)(zG) of the Taxation Laws Amendment Act, 2009 (Act No. 17 of 2009) - effective 1 January 2010

 

[Section 1(1) renumbered by section 271 of the Tax Administration Act, 2011 (Act No. 28 of 2011)]

 

[Section 1(2) inserted by section 271, read with paragraph 23(o) of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)]