Author: admin_kmos

“Foreign investment entity” definition of section 1 of ITA

Posted on by admin_kmos

 “foreign investment entity” means any person other than a natural person-

(a)     that is not incorporated, established or formed in the Republic;

(b)     the assets of which consist solely of a portfolio of one or more of the following:

(i)      amounts in cash or that constitute cash equivalents;

 

(ii)     financial instruments that-

 

(aa)   are issued by a listed company or by the government of the Republic in the national, provincial or local sphere; or

 

(bb)   if not issued by a listed company or by the government of the Republic in the national, provincial or local sphere, are traded by members of the general public and a market for that trade exists;

 

(iii)    financial instruments, the values of which are determined with reference to financial instruments contemplated in subparagraph (ii); or

 

(iv)    rights to receive any asset contemplated in subparagraph (i), (ii) or (iii),

 

which amounts, financial instruments and rights are held by that person for investment purposes;

(c)     where no more than 10 per cent of the shares, units or other form of participatory interest in that person are directly or indirectly held by persons that are residents; and

(d)     where that person has no employees and has no directors or trustees that are engaged in the management of that person on a full-time basis;

“Extraordinary exempt dividends” definition of Eighth Schedule

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(c)     “extraordinary exempt dividends” means so much of the amount of the aggregate of any exempt dividends received or accrued within the period of 18 months contemplated in subparagraph (1)-

(i)      as exceeds 15 per cent of the proceeds received or accrued from the disposal contemplated in that subparagraph ; and

(ii)     as has not been taken into account as an extraordinary dividend in terms of paragraph 43A (2).

[Item (c) substituted by section 69(1)(d) of Act 17 of 2009, by section 109(1)(b) of Act 24 of 2011 and by section 55(c) of Act 34 of 2019]

“International shipping income” definition of section 12Q of ITA

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“international shipping income” means the receipts and accruals of a person derived from international shipping mainly from the operation of one or more ships contemplated in paragraph (a) of the definition of “South African ship”;

[Definition of “international shipping income” substituted by section 31 of Act 23 of 2018 effective on 1 April 2019 and applies in respect of years of assessment commencing on or after that date.]