Category: Section 1 (ITA) – Interpretation

Below is a list of DELETED or REPEALED definitions for section 1 only.  For amendment details of EXISTING definitions, please review the amendment details for each individual definition in the “Options menu” of each individual definition.

Assisted gold mine

 

Definition of “assisted gold mine” inserted by section 5 of Act 76 of 1968 and deleted by section 2 of Act 141 of 1992.

 

Building society

 

Definition of “building society” inserted by section 1 of Act 108 of 1986 and deleted by section 2 of Act 3 of 2008.

 

Business day

 

Definition of “business day” inserted by section 2 of Act 113 of 1993 and deleted by section 271 of Act 28 of 2011 effective on 1 October 2012.

 

Capitalisation shares

 

Definition of “capitalization shares” inserted by section 4 of Act 85 of 1974 and deleted by section 6 of Act 7 of 2010 effective on 1 January 2011.

 

Chief Executive Officer

 

Definition of “Chief Executive Officer” inserted by section 2 of Act 36 of 1996 and deleted by section 34 of Act 34 of 1997.

 

Date of deep level production

 

Definition of “date of deep level production” deleted by section 2 of Act 3 of 2008.

 

Date of assessment

 

Definition of “date of assessment” inserted by section 4 of Act 69 of 1975 and deleted by section 271 of Act 28 of 2011 effective on 1 October 2012.

 

Dependant

 

Definition of “dependant” substituted by section 4 of Act 88 of 1971 and section 4 of Act 85 of 1974, amended by section 3 of Act 104 of 1979 and section 2 of Act 104 of 1980 and deleted by section 2 of Act 90 of 1988.

 

Designated country

 

Definition of “designated country” inserted section 6 of Act 74 of 2002 and deleted by section 12 of Act 45 of 2003.

 

Domestic company

 

Definition of “domestic company” inserted by section 4 of Act 85 of 1974 and deleted by section 2 of Act 59 of 2000.

 

Entertainment expenditure

 

Definition of “entertainment expenditure” inserted by section 2 of Act 121 of 1984 and deleted by section 2 of Act 3 of 2008.

 

Equity share capital

 

Definition of “equity share capital” substituted by section 3 of Act 8 of 2007 and substituted by the definition of “equity share” in section 6 of Act 7 of 2010 effective on 1 January 2011.

 

External company

 

Definition of “external company” inserted by section 4 of Act 85 of 1974 and deleted by section 2 of Act 59 of 2000.

 

Foreign equity instrument

 

Definition of “foreign equity instrument” inserted by section 17 of Act 60 of 2001, amended by section 6 of Act 74 of 2002 and deleted by section 4 of Act 31 of 2013 effective on 12 December 2013.

 

Government grant

 

Definition of “government grant” inserted by section 3 of Act 32 of 2005 and deleted by section 2 of Act 22 of 2012 effective on 1 January 2013.

 

Government scrapping payment

 

Definition of “government scrapping payment” inserted by section 3 of Act 20 of 2006 and deleted by section 2 of Act 22 of 2012 effective on 1 January 2013.

 

International headquarter company

 

Definition of “international headquarter company” inserted by section 2 of Act 59 of 2000 and deleted by section 12 of Act 45 of 2003.

 

Local authority

 

Definition of “local authority” amended by section 4 of Act 72 of 1963, substituted by section 5 of Act 88 of 1965 and section 2 of Act 141 of 1992 and deleted by section 3 of Act 20 of 2006.

 

Married

 

Definition of “married” deleted by section 5 of Act 5 of 2001.

 

Married person

 

Definition of “married person” substituted by section 3 of Act 90 of 1962, section 5 of Act 88 of 1965, section 4 of Act 88 of 1971 and section 4 of Act 90 of 1972, amended by section 3 of Act 104 of 1979, section 2 of Act 104 of 1980, section1 of Act 30 of 1984, section 2 of Act 90 of 1988 and section 2 of Act 70 of 1989 and deleted by section 2 of Act 21 of 1995.

 

Married woman

 

Definition of “married woman” inserted by section 2 of Act 70 of 1989, substituted by section 5 of Act 5 of 2001 and deleted by section 2 of Act 3 of 2008.

 

Mutual building society

 

Definition of “mutual building society” inserted by section 1 of Act 108 of 1986 and deleted by section 2 of Act 3 of 2008.

 

New deep level gold mine

 

Definition of “new deep level gold mine” deleted by section 2 of Act 70 of 1989.

 

New gold mine

 

Definition of “new gold mine” amended by section 4 of Act 72 of 1963 and deleted by section 2 of Act 70 of 1989.

 

Nominal value

 

Definition of “nominal value” inserted by section 4 of Act 85 of 1974 and deleted by section 6 of Act 7 of 2010 effective on 1 January 2011.

 

Other deep level gold mine

 

Definition of “other deep level gold mine” substituted by section 2 of Act 70 of 1989 and deleted by section 2 of Act 3 of 2008.

 

Post-1966 gold mine

 

Definition of “post–1966 gold mine” inserted by section 5 of Act 55 of 1966 and deleted by section 2 of Act 129 of 1991.

 

Qualifying statutory rate

 

Definition of “qualifying statutory rate” inserted by section 6 of Act 74 of 2002 and deleted by section 12 of Act 45 of 2003.

 

Scientific research

 

Definition of “scientific research” deleted by section 12 of Act 45 of 2003.

 

Secretary

 

Definition of “Secretary” inserted by section 4 of Act 90 of 1964 and deleted by section 2 of Act 104 of 1980.

 

Shareholder

 

Definition of “shareholder” substituted by section 3 of Act 90 of 1962, amended by section 2 of Act 121 of 1984, section 6 of Act 74 of 2002, section 12 of Act 45 of 2003, section 3 of Act 20 of 2006, section 3 of Act 8 of 2007 and section 6 of Act 7 of 2010 and deleted by section 7 of Act 24 of 2011 effective on 1 April 2012.

 

South African company

 

Definition of “South African company” inserted by section 4 of Act 85 of 1974, substituted by section 4 of Act 103 of 1976, section 2 of Act 96 of 1985 and section 2 of Act 36 of 1996 and deleted by section 2 of Act 59 of 2000.

 

Taxable amount

 

Definition of “taxable amount” inserted by section 4 of Act 88 of 1971 and deleted by section 2 of Act 104 of 1980.

 

Territory

 

Definition of “territory” inserted by section 6 of Act 89 of 1969, substituted by section 2 of Act 141 of 1992 and deleted by section 2 of Act 59 of 2000.

 

Other section 1 amendment details:

Section 1 renumbered to subsection 1(1) by section 271 of Act 28 of 2011 effective on 1 October 2012.

 Subsection (2) of section 1 substituted by section 271 of Act 28 of 2011 effective on 1 October 2012.

“Retirement component” definition of section 1 of ITA

Posted on by admin_kmos

“retirement component” means a component established in terms of the rules of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for a person who is a member of that fund, if the rules of the fund provide that-

(a)     two-thirds of the total retirement contributions to a pension fund, provident fund or retirement annuity fund by or on behalf of that member on or after 1 September 2024 are allocated to this component: Provided that-

(i)      in determining the value of the contributions to this component an amount of charges and risk premiums deductible against such contributions must not be taken into account;

(ii)     in the case of funds with a defined benefit funding structure, the total value attributed to this component on or after 1 September 2024 is to be determined with reference to two-thirds of the member’s “pensionable service” as contemplated in the rules of that fund on or after 1 September 2024; and

(iii)     a fund with a defined benefit structure that is unable to allocate contributions as contemplated in paragraph (ii) may allocate contributions utilising a reasonable method of allocation as approved by the Financial Sector Conduct Authority;

(b)       . . . . .

(c)     any amounts transferred from a retirement component of any other pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund on or after 1 September 2024 are allocated to this component;

[Paragraph (c) amended by section 1(1)(g) of Act 6 of 2025 deemed effective on 1 September, 2024]

(cA)   any amounts transferred from a savings component or vested component of any other pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund on or after 1 September 2024 may be allocated to this component; and

[Paragraph (cA) inserted by section 1(1)(g) of Act 6 of 2025 deemed effective on 1 September, 2024]

(d)     the total value of the member’s interest in the retirement component must be paid in the form of an annuity (including a living annuity), a combination of annuities (including a combination of methods of paying the annuity) or a combination of types of annuities except where the total member’s interest in the retirement component calculated together with two-thirds of the total member’s interest in the vested component does not exceed R165 000, where the member is deceased or where the member elects to transfer the retirement interest to a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund:

Provided that this definition shall not apply to-

(i)      a “beneficiary fund”, “pensioner” or a member to whom an “unclaimed benefit” as defined in section 1 of the Pension Funds Act is due as at 31 August 2024, a fund where a liquidator has been appointed in terms of the Pension Funds Act before 31 August 2024, and a fund with no member assets immediately before 1 September 2024;

(ii)      a legacy retirement annuity policy; or

(iii)    any person who is or was a member of a provident fund and who was 55 years of age or older on 1 March 2021 and is still a member of the same provident fund, or any person who is a member of a provident preservation fund and who was 55 years of age or older on 1 March 2021, unless such person has elected to contribute to this component within 12 months of 1 September 2024;

[Paragraph (iii) substituted by section 1(1)(h) of Act 6 of 2025 deemed effective on 1 September, 2024 (instructions erroneously refer to paragraph (iii) of the proviso to paragraph (a))]

[Definition of “retirement component” added by section 1(1)(zF) of Act 12 of 2024 and substituted by section 1(1)(zE) of Act 44 of 2024 deemed to have come into operation on 1 September, 2024]

“Retirement date” definition of section 1 of ITA

Posted on by admin_kmos

“retirement date” means the date on which –

(a)     a member of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund, elects to retire and in terms of the rules of that fund, becomes entitled to an annuity or a lump sum benefit contemplated in paragraph 2(1)(a)(i) of the Second Schedule on or subsequent to attaining normal retirement age; or

[Paragraph (a) substituted by section 1 of Act 43 of 2014, section 2 of Act 17 of 2017 and section 1 of Act 23 of 2018 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

(b)     a nominee or dependant of a deceased member of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund, in terms of the rules of that fund, becomes entitled to an annuity or a lump sum benefit contemplated in paragraph 2(1)(a)(i) of the Second Schedule on the death of the member;

“Retirement-funding employment” definition of section 1 of ITA

Posted on by admin_kmos

“retirement–funding employment” ……….

[Definition of “retirement-funding employment” inserted by section 3 of Act 104 of 1979, amended by section 2 of Act 94 of 1983, section 2 of Act 121 of 1984, section 2 of Act 113 of 1993, section 2 of Act 21 of 1994, section 6 of Act 74 of 2002, section 3 of Act 8 of 2007, section 2 of Act 3 of 2008 and section 4 of Act 60 of 2008]

[The proposed date of the deletion in section 4 of Act 31 of 2013 effective on 1 March 2015, was substituted by section 119 of Act 43 of 2014 effective on 1 March 2016 and the proposed amendment by section 119 of Act 43 of 2014 was repealed by section 155 of Act 25 of 2015 effective on 20 January 2015)]

[Definition of “retirement-funding employment is deleted by section 4 of Act 31 of 2013 effective on 1 March 2015]

“Retirement fund lump sum benefit” definition of section 1 of ITA

Posted on by admin_kmos

“retirement fund lump sum benefit” means an amount determined in terms of paragraph 2(1)(a) or (c) of the Second Schedule;

[Definition of “retirement fund lump sum benefit” inserted by section 3 of Act 8 of 2007 and substituted by section 2 of Act 3 of 2008, section 7 of Act 17 of 2009 and section 2 of Act 17 of 2017 effective on 1 March 2018 and applies in respect of years of assessment commencing on or after that date]

“Retirement interest” definition of section 1 of ITA

Posted on by admin_kmos

“retirement interest” means-

(a)     in relation to any period prior to 1 September 2024, a member’s share of the value of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as determined in terms of the rules of the fund on the date on which he or she elects to retire or transfer to a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; or

(b)     in relation to any period commencing on 1 September 2024, a member’s share of the value of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as determined in terms of the rules of the fund comprising the member’s interest in the savings component, member’s interest in the retirement component and member’s interest in the vested component, on the date on which he or she elects to retire or transfer to a pension preservation fund, provident preservation fund or retirement annuity fund as contemplated in paragraph 2(1)(c) of the Second Schedule or transfer to a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as contemplated in paragraph 2(1)(d) of the Second Schedule;

[Definition of “retirement interest” inserted by section 2(1)(zF) of Act 3 of 2008 and substituted by section 1(1)(q) of Act 43 of 2014, by section 2(1)(k) of Act 17 of 2017, by section 1(1)(x) of Act 23 of 2018, by section 1(1)(n) of Act 17 of 2023 and by section 1(1)(zG) of Act 12 of 2024 effective on 1 September, 2024 (effective date in section 1(2) of Act 12 of 2024 as substituted by section 2 of Act 6 of 2025)]

“Return of capital” definition of section 1 of ITA

Posted on by admin_kmos

“return of capital” means any amount transferred by a company that is a resident for the benefit or on behalf of any person in respect of any share in that company to the extent that that transfer results in a reduction of contributed tax capital of the company, whether that amount is transferred-

(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 to the extent that the amount so transferred constitutes-

(i)      shares in the company; or

(ii)   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 by way of 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 (ii) substituted by section 2(1)(l) of Act 17 of 2017 and by section 2(1)(g) of Act 34 of 2019 deemed effective on 1 March, 2019]

[Definition of “return of capital” inserted by section 7 of Act 24 of 2011 and substituted by section 2 of Act 17 of 2017 effective on 18 December 2017]

“Savings component” definition of section 1 of ITA

Posted on by admin_kmos

“savings component” means a component established in terms of the rules of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for a person who is a member of that fund: Provided that the rules of the fund provide that-

(a)     a one-off amount of 10 per cent of the total value of each contract in the fund as at 31 August 2024, limited to R30 000, is allocated to this component on or after 1 September 2024: Provided that-

(i)      the amount may be determined on or after 1 September 2024, and the allocation must be backdated to that date; and

(ii)     in the case of any person who is or was a member of a provident fund or provident preservation fund and who is or was 54 years of age or younger on 1 March 2021, the one-off amount is to be calculated proportionally between that member’s fund value in that provident fund or provident preservation fund on 28 February 2021, including the increase in the value up to and including 31 August 2024 from that fund, and the value of contributions received on or after 1 March 2021, including any fund return on those contributions;

(b)     one-third of the total retirement contributions to a pension fund, provident fund or retirement annuity fund by or on behalf of that member on or after 1 September 2024 is allocated to this component: Provided that-

(i)      in determining the value of the contributions to this component an amount of charges and risk premiums deductible against such contributions must not be taken into account;

(ii)     in the case of funds with a defined benefit funding structure, the total value attributed to this component on or after 1 September 2024 is to be determined with reference to one-third of the member’s “pensionable service” as contemplated in the rules of that fund on or after 1 September 2024; and

(iii)    a fund with a defined benefit structure that is unable to allocate contributions as contemplated in subparagraph (ii) may allocate contributions utilising a reasonable method of allocation approved by the Financial Sector Conduct Authority;

(c)     . . . . .

(d)     any amounts transferred from a savings component of any other pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund on or after 1 September 2024 are allocated to this component;

(e)     the member may elect to allocate the value of the member’s interest in this component into the member’s retirement component in that fund;

(f)      the member’s interest in this component or portion thereof may be paid in the form of a savings withdrawal benefit;

(g)     the member’s interest in this component may, on election of the member, nominee or dependant-

(i)      on the death of the member, be paid to a nominee or dependant of the deceased member and is deemed to be a lump sum benefit contemplated in paragraph 2(1)(a) of the Second Schedule; or

(ii)     on retirement, be paid to the retired member and is deemed to be a lump sum benefit contemplated in paragraph 2(1)(a) of the Second Schedule and any portion of the member’s interest in this component not paid as a lump sum benefit must be added to the amount available to be paid in the form of an annuity, a combination of annuities or a combination of types of annuities as contemplated in paragraph (d) of the definition of “retirement component”:

[Paragraph (g) substituted by section 1(1)(i) of Act 6 of 2025 deemed effective on 1 September, 2024 and amended by section 1(1)(l) of Act 5 of 2026 deemed effective on 1 September 2024]

Provided further that this definition shall not apply to-

(i)      a “beneficiary fund”, “pensioner” or “a member to whom an unclaimed benefit” as defined in section 1 of the Pension Funds Act is due at 31 August 2024, a fund where a liquidator has been appointed in terms of the Pension Funds Act before 31 August 2024 and a fund with no member assets immediately before 1 September 2024;

(ii)     a legacy retirement annuity policy; or

(iii)    any person who is or was a member of a provident fund and who was 55 years of age or older on 1 March 2021 and is still a member of the same provident fund, or any person who is a member of a provident preservation fund and who was 55 years of age or older on 1 March 2021, unless such person has elected to contribute to this component within 12 months of 1 September 2024, in which case a one-off amount of 10 per cent of the value of the member’s vested component as at 31 August 2024 or the last day of the month in which the election was made, or as may be determined by the rules of the fund, limited to R30 000, must be allocated to this component effective on the last day of the month in which the election was made;

[Paragraph (iii) substituted by section 1(1)(j) of Act 6 of 2025 deemed effective on 1 September, 2024 (instructions erroneously refer to paragraph (iii) of the further proviso to paragraph (b) of the proviso)]

[Definition of “savings component” inserted by section 1(1)(zH) of Act 12 of 2024 and substituted by section 1(1)(zF) of Act 44 of 2024 deemed to have come into operation on 1 September, 2024]

“Savings withdrawal benefit” definition of section 1 of ITA

Posted on by admin_kmos

“savings withdrawal benefit” means a portion of the member’s share of the value in a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund that the member has elected to withdraw from the portion of his or her share allocated to the savings component provided by that fund before termination of membership of the fund: Provided that-

(a)     the member’s right is limited to one withdrawal during a year of assessment;

(b)     where a member has multiple contracts in the same fund, one withdrawal during a year of assessment may be made from each of the contracts; and

(c)     the value of each withdrawal, before taking into account any charges or transaction costs, may not be less than R2 000: Provided that where a member terminates their membership in that fund within any year of assessment, such member may be allowed a withdrawal of the total balance in the savings component whether or not such member has made a withdrawal from that fund as contemplated in paragraph (a) or (b) during that same year of assessment;

[Paragraph (c) substituted by section 1(1)(m) of Act 5 of 2026 effective on 1 March, 2026 and applicable in respect of years of assessment commencing on or after that date]

[Definition of “savings withdrawal benefit” inserted by section 1(1)(zH) of Act 12 of 2024 and substituted by section 1(1)(zG) of Act 44 of 2024 deemed effective on 1 September, 2024]