KMOS

25E Determination of contributed tax capital in foreign currency

Where the functional currency of a company is-

(a) the currency of the Republic and any amount referred to in paragraphs (a)(i), (ii) or (iii) or (b)(i), (ii) or (iii) of the definition of “contributed tax capital” is denominated in any currency other than the currency of the Republic; or

(b) any currency other than the currency of the Republic and any amount referred to in paragraphs (a)(aa), (bb) or (cc) or (b)(aa), (bb) or (cc) of the definition of “contributed tax capital” is denominated in any currency other than the currency of the Republic,

that amount must be translated to the currency of the Republic by applying the spot rate on the date on which that amount must be taken into account for purposes of the determination of contributed tax capital.

[Section 25E inserted by section 30(1) of Act 17 of 2023 and substituted by section 23(1) of Act 42 of 2024 effective on 1 January, 2025]

TRANSFER BETWEEN THE COMPONENTS OF THE RETIREMENT SYSTEM: DEDUCTIONS

6B. The deduction to be allowed from an amount contemplated in paragraph 2(1)(d) is equal to so much of that amount as is transferred for the benefit of a person from the-

(a) savings component in a fund into the savings component of a member or former spouse of that member or the retirement component of a member or former spouse of that member in another pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund;

(b) vested component in that fund into the vested component of that member or former spouse of that member or the retirement component of that member or former spouse of that member in another pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; and

(c) retirement component into the retirement component of that member or former spouse of that member in another pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund:

Provided that subparagraph (a), (b) or (c) only applies to an amount transferred on termination of membership in the transferor fund or an amount contemplated in paragraph 2(1)(b)(iA), and only if all the remaining components are transferred to the same transferee fund or if all the components are transferred on an individual contract policy basis to the same transferee fund.

[Paragraph 6B added by section 4(1) of Act 12 of 2024 and substituted by section 3(1) of Act 44 of 2024 deemed to have come into operation on 1 September, 2024]

KMOS

Section 25E (ITA) – Determination of contributed tax capital in foreign currency

Interpretation Note 135 (IN135) – Sale and leaseback arrangements (Sections 23D, 23G of ITA)

BPR413 (ITA) – Application of proviso to section 8EA(3)

BPR412 (ITA) – Tax consequences of the issue of a long-term loan for the issuer and holder (Definition of “group of companies”, sections 8F, 10(1)(k), 41(1), 64FA of ITA)

BPR411 (ITA) (VAT) – Tax consequences of a deemed input tax deduction under the VAT Act (“Gross income”, “asset” definitions of ITA, “input tax” definition, section 8, 16 of VAT Act)

BGR74 (VAT) – VAT treatment of certain supplies of goods or services made by municipalities to a national or provincial government (“Grant”, “input tax” definitions, sections 7, 8(5A), 54 of VAT Act)

BPR410 (ITA) – Disposal by a controlled foreign company of equity shares in a foreign company (Section 9H(3), paragraph 64B of Eighth Schedule of ITA)

Interpretation Note 134 (IN134) – Disposal of assets by deceased person, deceased estate, and transfer of assets between spouses (Sections 9HA, 9HB, 25 of ITA)

Paragraph 6B (Second Schedule) – Transfer between the components of the retirement system: Deductions