Category: Section 9A (ITA) – Blocked foreign funds

Section 9A

 

  1. Subsection (2) substituted by section 6 of Act 3 of 2008.

 

  1. Subsection (3) substituted by section 23 of Act 24 of 2011 effective on 1 January 2012.

 

  1. Subsection (4) substituted by section 6 of Act 3 of 2008 and section 23 of Act 24 of 2011 effective on 1 January 2012.

 

  1. Section 9A inserted by section 8 of Act 85 of 1987, amended by s 8 of Act 141 of 1992, section 8 of Act 21 of 1994 and section 8 of Act 28 of 1997, repealed by section 8 of Act 59 of 2000, inserted by section 13 of Act 74 of 2002 and substituted by section 12 of Act 35 of 2007.

Section 9A (ITA) – Blocked foreign funds

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9A.     Blocked foreign funds

 

(1)     Where any amount, or any portion of any amount, received by or accrued to any person which is required to be included in the income of that person during any year of assessment may not be remitted to the Republic during that year as a result of currency or other restrictions or limitations imposed in terms of the laws of the country where the amount arose, that person shall be allowed to deduct from his or her income for that year an amount equal to so much of the amount or portion which may not be remitted as is required to be included in the income of that person for that year.

(2)     The amount or portion which may not be remitted during the year of assessment contemplated in subsection (1) shall be deemed to be an amount received by or accrued to the person contemplated in that subsection in the following year of assessment.

(3)     Where any amount, or any portion of any amount, of the net income of a controlled foreign company in respect of a foreign tax year of the controlled foreign company may not be remitted to the Republic for the reasons contemplated in subsection (1), there shall be allowed to be deducted from the net income of the controlled foreign company for that foreign tax year an amount equal to so much of the amount or portion which may not be remitted.

(4)     The amount or portion which may not be remitted as contemplated in subsection (3) shall be deemed to be an amount received by or accrued to the controlled foreign company contemplated in that subsection in the following foreign tax year of the controlled foreign company.


9B.    ………