Author: admin_kmos

“Equity share” definition of section 1 of ITA

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“equity share” means any share in a company, excluding any share that, neither as respects dividends or foreign dividends, nor as respects returns of capital or foreign returns of capital, carries any right to participate beyond a specified amount in a distribution;

[Definition of “equity share” (previously “equity share capital”) substituted by section 3(1)(d) of Act 8 of 2007, by section 6(1)(g) of Act 7 of 2010, by section 7(1)(h) and (i) of Act 24 of 2011 and by section 1(1)(a) of Act 5 of 2026 deemed effective on 1 April 2012]

“Domestic treasury management company” definition of section 1 of ITA

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“domestic treasury management company” means a company-

(a)       that is incorporated or deemed to be incorporated—

(i)  by or under any law in force in the Republic and is not subject to exchange control restrictions by virtue of being registered with the financial surveillance department of the South African Reserve Bank; or

(ii) by or under the law of any country other than the Republic and is not subject to exchange control restrictions by virtue of being registered before 1 January 2019 with the financial surveillance department of the South African Reserve Bank; and

(b)       that has its place of effective management in the Republic;

[Definition of “domestic treasury management company” inserted by section 4(1)(o) of Act 31 of 2013, amended by section 2(1)(c) of Act 17 of 2017 and substituted by section 2(1)(b) of Act 34 of 2019]

“Dividend” definition of section 1 of ITA

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“dividend” means any amount, other than a dividend consisting of a distribution of an asset in specie declared and paid as contemplated in section 31(3), transferred or applied by a company that is a resident for the benefit or on behalf of any person in respect of any share in that company, whether that amount is transferred or applied-

[Words preceding paragraph (a) substituted by section 1 of Act 23 of 2018 effective on 1 January 2019, applies in respect of years of assessment commencing on or after that date]

(a)     by way of a distribution made by; or

(b)     as consideration for the acquisition of any share in,

that company, but does not include any amount so transferred or applied to the extent that the amount so transferred or applied-

(i)      results in a reduction of contributed tax capital of the company;

 

(ii)     constitutes shares in the company;   or  

 

(iii)    constitutes an acquisition by the company of its own securities by way of a general repurchase of securities as contemplated in subparagraph  (b) of paragraph  5.67(B) of section 5 of the JSE Limited Listings Requirements, where that acquisition complies with any applicable requirements prescribed by paragraph s 5.68 and 5.72 to 5.81 of section 5 of the JSE Limited Listings Requirements or a general repurchase of securities as contemplated in the listings requirements of any other exchange, licensed under the Financial Markets Act, that are substantially the same as the requirements prescribed by the JSE Limited Listings Requirements, where that acquisition complies with the applicable requirements of that exchange;

[Paragraph (iii) substituted by section 2(1)(b) of Act 17 of 2017 and by section 2(1)(a) of Act 34 of 2019]

“Depreciable asset” definition of section 1 of ITA

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“depreciable asset” means an asset as defined in paragraph 1 of the Eighth Schedule (other than any trading stock and any debt), in respect of which a deduction or allowance determined wholly or party with reference to the cost or value of that asset is allowable in terms of this Act for purposes other than the determination of any capital gain or capital loss;