Income Tax Act - FAOLEX Database

1 Income TAX ACT 58 OF 1962 [ASSENTED TO 25 MAY 1962] [DATE OF COMMENCEMENT: 1 JULY 1962] (English text signed by the State President) as amended by Income Tax Amendment Act 90 of 1962 Income Tax Amendment Act 6 of 1963 Income Tax Act 72 of 1963 Income Tax Act 90 of 1964 Income Tax Act 88 of 1965 Income Tax Act 55 of 1966 Income Tax Act 95 of 1967 Income Tax Act 76 of 1968 Income Tax Act 89 of 1969 Income Tax Act 52 of 1970 Income Tax Act 88 of 1971 Insolvency Amendment Act 6 of 1972 Income Tax Act 90 of 1972 Income Tax Act 65 of 1973 Income Tax Act 85 of 1974 Income Tax Act 69 of 1975 Income Tax Act 103 of 1976 Income Tax Act 113 of 1977 Revenue Laws Amendment Act 114 of 1977 Income Tax Act 101 of 1978 Income Tax Act 104 of 1979 Income Tax Act 104 of 1980 Income Tax Act 96 of 1981 Income Tax Act 91 of 1982 Income Tax Act 94 of 1983 Income Tax Amendment Act 30 of 1984 Income Tax Act 121 of 1984 Income Tax Act 96 of 1985 Income Tax Act 65 of 1986 Transfer of Powers and Duties of the State President Act 97

2 Of 1986 Taxation Laws Amendment Act 108 of 1986 Income Tax Act 85 of 1987 Income Tax Act 90 of 1988 Income Tax Amendment Act 99 of 1988 Income Tax Act 70 of 1989 Legal Succession to the south African Transport Services Act 9 of 1989 Income Tax Act 101 of 1990 Income Tax Act 129 of 1991 Taxation Laws Amendment Act 136 of 1991 Income Tax Act 141 of 1992 Income Tax Act 113 of 1993 Revenue Laws Amendment Act 140 of 1993 Income Tax Amendment Act 168 of 1993 Income Tax Act 21 of 1994 Income Tax Act 21 of 1995 Income Tax Act 36 of 1996 Revenue Laws Amendment Act 46 of 1996 General Law Amendment Act 49 of 1996 Income Tax Act 28 of 1997 south African Revenue Service Act 34 of 1997 2 Taxation Laws Amendment Act 30 of 1998 Taxation Laws Amendment Act 32 of 1999 Revenue Laws Amendment Act 53 of 1999 Taxation Laws Amendment Act 30 of 2000 Revenue Laws Amendment Act 59 of 2000 Taxation Laws Amendment Act 5 of 2001 Revenue Laws Amendment Act 19 of 2001 Second Revenue Laws Amendment Act 60 of 2001 Taxation Laws Amendment Act 30 of 2002 Revenue Laws Amendment Act 74 of 2002 Exchange Control Amnesty and Amendment of Taxation Laws Act 12 of 2003 Revenue Laws Amendment Act 45 of 2003 Prevention and Combating of Corrupt Activities Act 12 of 2004 Taxation Laws Amendment Act 16 of 2004 Revenue Laws Amendment Act 32 of 2004 Second Revenue Laws Amendment Act 34 of 2004 Regulations under this Act ANNUAL GRADING ALLOWANCES FOR HOTEL-KEEPERS CONDITIONS FOR THE PROVISION OF SCHOLARSHIPS, BURSARIES AND AWARDS FOR STUDY, RESEARCH AND TEACHING DETERMINATION OF INTEREST RATE FOR PURPOSES OF PARAGRAPH (a)

3 OF THE DEFINITION OF 'OFFICIAL RATE OF INTEREST' IN PARAGRAPH 1 OF THE SEVENTH SCHEDULE TO THE Income TAX ACT 58 OF 1962 DETERMINATION OF THE DAILY ALLOWANCE IN RESPECT OF MEALS AND INCIDENTAL COSTS FOR PURPOSES OF SECTION 8(1) OF THE Income TAX ACT 58 OF 1962 FIXING OF RATE PER KILOMETRE IN RESPECT OF MOTOR VEHICLES FOR THE PURPOSES OF SECTION 8(b)(ii) AND (iii) GENERAL REGULATIONS UNDER THE Income TAX ACT, 1962 INSURANCE REGULATIONS NOTICE FIXING AMOUNT OF TAX IN DISPUTE FOR PURPOSES OF APPEAL TO TAX BOARD NOTICE SETTING OUT ARRANGEMENTS FOR PURPOSES OF SECTION 76A(1)(a) AND SECTION 76A(1)(b) PROCEDURES FOR SUBMITTING RETURNS IN ELECTRONIC FORMAT AND REQUIREMENTS FOR ELECTRONIC SIGNATURES PROCEDURES TO BE OBSERVED IN LODGING OBJECTIONS AND NOTING APPEALS REGULATIONS MADE UNDER SECTION 12G (7) OF THE Income TAX ACT 58 OF 1962 REGULATIONS PRESCRIBING THE STEPS TO BE TAKEN TO LIQUIDATE, WIND UP OR DEREGISTER A COMPANY REGULATIONS TO PRESCRIBE ADDITIONAL REQUIREMENTS IN RESPECT OF PUBLIC BENEFIT ORGANISATIONS TAX HOLIDAY REGULATIONS TRADES RECOGNIZED AS EXPORT SERVICE INDUSTRIES, 1974 3 TRADES RECOGNIZED AS EXPORT SERVICE INDUSTRIES, 1976 TRADES RECOGNIZED AS EXPORT SERVICE INDUSTRIES, 1983 TRADES RECOGNIZED AS EXPORT SERVICE INDUSTRIES, 1986 ACT To consolidate the law relating to the taxation of incomes and donations, to provide for the recovery of taxes on persons, to provide for the deduction by employers of amounts from the remuneration of employees in respect of certain tax liabilities of employees.

4 And to provide for the making of provisional tax payments and for the payment into the National Revenue Fund of portions of the normal tax and interest and other charges in respect of such taxes, and to provide for related matters. [Long title amended by s. 20 of Act 6 of 1963 and substituted by s. 39 of Act 5 of 2001.] ARRANGEMENT OF SECTIONS PRELIMINARY Section 1. Interpretation. CHAPTER I ADMINISTRATION 2. Act to be administered by Commissioner. 3. Exercise of powers and performance of duties. 4. Preservation of secrecy. CHAPTER II THE TAXES Part I Normal Tax 5. Levy of normal tax and rates thereof. 5A.. [S. 5A inserted by s. 6 of Act 88 of 1971 and repealed by s. 4 of Act 104 of 1980.] 6. Normal tax rebates. [S. 6 repealed by s. 7 of Act 88 of 1971 and inserted by s. 5 of Act 104 of 1980.] 6bis. Rebate in respect of foreign Income taxes on royalties and similar Income .

5 [S. 6bis inserted by s. 7 of Act 88 of 1965.] 6ter.. [S. 6ter inserted by s. 8 (1) of Act 95 of 1967 and repealed by s. 6 of Act 129 of 1991.] 6quat. Rebate in respect of foreign taxes on Income . [S. 6quat inserted by s. 9 of Act 89 of 1969, repealed by s. 5 of Act 94 of 1983 and inserted by s. 5 of Act 85 of 1987.] 6quin.. [S. 6quin inserted by s. 6 (1) of Act 104 of 1979 and repealed by s. 6 of Act 94 of 1983.] 7. When Income is deemed to have accrued or to have been received. 7A. Date of receipt or accrual of antedated salaries or pensions and of certain retirement gratuities. [S. 7A inserted by s. 6 of Act 69 of 1975.] 8. Certain amounts to be included in Income or taxable Income . 8A. Gains made by directors of companies or by employees in respect of rights to acquire marketable securities. [S. 8A inserted by s. 11 of Act 89 of 1969.] 8B. Taxation of amounts derived from broad-based employee share plan [S.]

6 8B inserted by s. 6 (1) of Act 104 of 1980, repealed by s. 6 (1) of Act 101 of 1990 and inserted by s. 8 (1) of Act 32 of 2004.] 8C. Taxation of directors and employees on vesting of equity instruments [S. 8C inserted by s. 7 (1) of Act 96 of 1981, repealed by s. 7 of Act 101 of 1990 and inserted by s. 8 (1) of Act 32 of 2004.] 8D.. [S. 8D inserted by s. 7 (1) of Act 96 of 1981 and repealed by s. 8 (1) of Act 101 of 1990.] 4 8E. Dividends on certain shares deemed to be interest in relation to the recipient thereof. [S. 8E inserted by s. 6 of Act 70 of 1989.] 8F. Limitation of deduction of certain interest payments [S. 8F inserted by s. 10 (1) of Act 32 of 2004.] 9. Circumstances in which amounts are deemed to have accrued from sources within the Republic. 9A. Blocked foreign funds [S. 9A inserted by s. 8 of Act 85 of 1987, repealed by s. 8 of Act 59 of 2000 and inserted by s.

7 13 of Act 74 of 2002.] 9B. Circumstances in which certain amounts received or accrued in relation to disposal of listed shares are deemed to be of capital nature. [S. 9B inserted by s. 9 of Act 101 of 1990.] 9C.. [S. 9C inserted by s. 9 (1) of Act 28 of 1997 and repealed by s. 9 of Act 59 of 2000.] 9D. Net Income of controlled foreign companies [S. 9D inserted by s. 9 (1) of Act 28 of 1997 and substituted by s. 14 (1) of Act 74 of 2002.] 9E. Taxation of foreign dividends [S. 9E inserted by s. 20 (1) of Act 30 of 2000 and substituted by s. 15 (1) of Act 74 of 2002.] 9F. Income from foreign sources [S. 9F inserted by s. 12 of Act 59 of 2000.] 9G. Taxable Income in respect of foreign equity instruments. [S. 9G inserted by s. 25 (1) of Act 60 of 2001.] 10. Exemptions. 10A. Exemption of capital element of purchased annuities. [S. 10A inserted by s. 8 (1) of Act 65 of 1973.

8 ] 11. General deductions allowed in determination of taxable Income . 11A. Deductions in respect of expenditure and losses incurred prior to commencement of trade. [S. 11A inserted by s. 28 (1) of Act 45 of 2003.] 11B. Deductions in respect of research and development. [S. 11B inserted by s. 29 of Act 45 of 2003.] 11C. Deductions in respect of foreign dividends [S. 11C inserted by s. 18 (1) of Act 32 of 2004.] 11bis.. [S. 11bis inserted by s. 10 (1) of Act 90 of 1962 and repealed by s. 20 of Act 74 of 2002.] 11ter. Allowance to manufacturers in economic development areas in respect of the cost of power, water and transport. [S. 11ter inserted by s. 10 of Act 90 of 1964 and substituted by s. 12 of Act 88 of 1965.] 11quat. Allowance to manufacturers in economic development areas in respect of increased administrative and manufacturing costs. [S. 11quat inserted by s. 10 of Act 90 of 1964 and substituted by s.

9 12 of Act 88 of 1965.] 11quin. Allowance in respect of expenditure on housing for employees of manufacturers in economic development areas. [S. 11quin inserted by s. 10 of Act 90 of 1964 and substituted by s. 12 of Act 88 of 1965.] 11sex. Deductions of compensation for railway operating losses. [S. 11sex inserted by s. 10 of Act 90 of 1972.] 11sept.. [S. 11sept inserted by s. 14 (1) of Act 85 of 1974, substituted by s. 9 (1) of Act 104 of 1979 and repealed by s. 15 of Act 129 of 1991.] 11oct. Allowance in respect of expenditure on submissions relating to undertakings in economic development areas. [S. 11oct inserted by s. 10 (1) of Act 91 of 1982.] 12.. [S. 12 repealed by s. 16 of Act 129 of 1991.] 12A.. [S. 12A inserted by s. 16 of Act 55 of 1966 and repealed by s. 17 of Act 129 of 1991.] 5 12B. Deduction in respect of certain machinery, plant, implements, utensils and articles.

10 [S. 12B inserted by s. 11 of Act 90 of 1988.] 12C. Deduction in respect of certain machinery, plant, implements, utensils and articles. [S. 12C inserted by s. 14 (1) of Act 101 of 1990.] 12D. Deduction in respect of certain pipelines, transmission lines and railway lines [S. 12D inserted by s. 23 (1) of Act 30 of 2000.] 12E. Deductions in respect of small business corporations. [S. 12E inserted by s. 12 of Act 19 of 2001 and amended by s. 31 (1) (a) of Act 45 of 2003.] 12F. Deduction in respect of certain aircraft hangars, aprons, runways and taxiways. [S. 12F inserted by s. 12 of Act 19 of 2001.] 12G. Additional industrial investment allowance in respect of industrial assets used for qualifying strategic industrial projects. [S. 12G inserted by s. 12 of Act 19 of 2001.] 12H. Deduction in respect of learnership agreements. [S. 12H inserted by s. 18 (1) of Act 30 of 2002.]