Older Persons Act, 2006
R 385
Income Tax Act, 1962 (Act No. 58 of 1962)Chapter II: The TaxesPart I : Normal Tax7B. Timing of accrual and incurral of variable remuneration |
| (1) | For the purposes of this section— |
"employee"
means an employee as defined in paragraph 1 of the Fourth Schedule;
"employer"
means an employer as defined in paragraph 1 of the Fourth Schedule;
"variable remuneration"
means—
| (a) | overtime pay, bonus or commission contemplated in the definition of "remuneration" in paragraph 1 of the Fourth Schedule; |
| (b) | an allowance or advance paid in respect of transport expenses as contemplated in section 8(1)(b)(ii) or (iii); |
| (c) | any amount which an employer has during any year of assessment become liable to pay to an employee in consequence of the employee having during such year become entitled to any period of leave which had not been taken by the employee during that year. |
| (d) | any night shift allowance; |
| (e) | any standby allowance; |
| (f) | any amount paid or granted in reimbursement of any expenditure as contemplated in section 8(1)(a)(ii); or |
| (g) | any amount of ‘remuneration’ as defined in paragraph 1 of the Fourth Schedule (other than a bonus) that is determined based on the employee’s work performance. |
[Section 7B(g) inserted by section 2(1)(b) 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 applies in respect of amounts accrued or expenditure incurred on or after that date (section 2(2))]
| (2) | In determining the taxable income derived by any person during a year of assessment, any amount to which an employee becomes entitled from an employer in respect of variable remuneration is deemed to— |
| (a) | accrue to the employee; and |
| (b) | constitute expenditure incurred by the employer, |
on the date during the year of assessment on which the amount is paid to the employee by the employer.
Provided that where the employee is deceased before the date of payment, the amount is deemed to accrue to the employee and constitutes expenditure incurred by the employer, on the day during the year of assessment prior to the date of the employee’s death.
[Proviso inserted by section 2(1)(c) 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 applies in respect of amounts accrued or expenditure incurred on or after that date (section 2(2))]
