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Income Tax Act, 1962 (Act No. 58 of 1962)

Notices

2006 Notices

Special Tax Measures relating to 2010 FIFA World Cup South Africa

Part III: Tax treatment of certain other entities

7. Income tax treatment of receipts and accruals

 

(1) Notwithstanding anything to the contrary contained in the Income Tax Act, 1962, but subject to subparagraph (2), any receipt or accrual of an entity contemplated in paragraph 6 is excluded from ‘‘gross income’’ as defined in that Act, to the extent that it is derived by that person from—
(a) the sale of any consumable or semi-durable goods; or
(b) any service rendered by that entity which is—
(i) intrinsic to the staging of the Championship;
(ii) enjoyed or partially utilised at a Championship site; and
(iii) paid for by a member of the general public or by FIFA, a FIFA Subsidiary or the Local Organising Committee.

 

(2) Subparagraph (1) applies only in respect of the sale of goods or services rendered at a site contemplated in—
(a) Subject to item (e), paragraphs (a), (b) and (c) of the definition of ‘‘Championship site’’ during the Championship duration;
(b) paragraph (d) of the definition of ‘‘Championship site’’ on official FIFA sanctioned training days;
(c) paragraph (e) of the definition of ‘‘Championship site’’ on match days;
(d) paragraph (f) of the definition of ‘‘Championship site’’ during the period commencing six months prior to the opening ceremony of the 2009 Confederations Cup and terminating one month after the closing ceremony of the 2010 FIFA World Cup;
(e) paragraph (c) of the definition of "Championship site", where FIFA and the Commissioner have agreed in terms of that paragraph that it will be an additional area or facility used for an official event, during such period as may be agreed between the parties.

 

(3) Notwithstanding subparagraph (2), any receipt or accrual of a FIFA Designated Service Provider is excluded from ‘‘gross income’’ as defined in that Act, to the extent that it is derived by that entity from the sale of any goods or rendering of services which are directly connected to the Championship and those goods are sold or services are rendered within the parameters for which that FIFA Designated Service Provider has been accredited by FIFA.
(4) The payment of amounts, which relate to the Championship between the entities contemplated in paragraph 6 are not subject to the withholding taxes in terms of section 35 or 35A of the Income Tax Act, 1962.