“gross income”, in relation to any year or period of assessment, means-

(i)      in the case of any resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such resident; or

(ii)     in the case of any person other than a resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such person from a source within the Republic,

during such year or period of assessment, excluding receipts or accruals of a capital nature, but including, without in any way limiting the scope of this definition, such amounts (whether of a capital nature or not) so received or accrued as are described hereunder, namely-

(a)     any amount received or accrued by way of an annuity, including any amount contemplated in the definition of “living annuity” or the definition of “annuity amount” in section 10A(1), other than an amount contemplated in paragraph (d)(ii);

[Paragraph (a) substituted by section 2(1)(e) of Act 113 of 1993, by section 2(1)(k) of Act 3 of 2008, by section 2(1)(n) of Act 22 of 2012 and by section 1(1)(b) of Act 20 of 2022]

(b)     any amount payable to the taxpayer-

(i)      by his the spouse or former spouse of that taxpayer, under any judicial order or written agreement of separation or under any order of divorce, by way of alimony or allowance or maintenance of the taxpayer or any children; or

(ii)     in terms of any maintenance order for the maintenance of a child as contemplated in section 15(1) of the Maintenance Act, 1998 (Act No. 99 of 1998);

(c)     any amount, including any voluntary award, received or accrued in respect of services rendered or to be rendered or any amount (other than an amount referred to in section 8(1), 8B or 8C) received or accrued in respect of any employment or the holding of any office: Provided that-

[Words preceding the proviso substituted by section 7 of Act 24 of 2011 and section 5 of Act 15 of 2016 effective on 1 March 2017 in respect of years of assessment ending on or after that date]

(i)      the provisions of this paragraph shall not apply in respect of any benefit or advantage in respect of which the provisions of paragraph (i) apply;

(ii)     any amount received by or accrued to or for the benefit of any person in respect of services rendered or to be rendered by any other person shall for the purposes of this definition be deemed to have been received by or to have accrued to the said other person;

(iii)      …….

(iv)     …….

(v)      …….

(vi)     …….

[Paras. (iii) to (vi) inclusive deleted by section 9(a) of Act 30 of 2002]

(vii)   the provisions of this paragraph shall not apply in respect of any amount received by or accrued to or for the benefit of any person in respect of long service as defined in paragraph 5(4) of the Seventh Schedule, to the extent that the aggregate value of an amount determined under this paragraph together with all amounts determined under paragraphs 5(2)(b), 6(4)(d) and 10(2)(e) of the Seventh Schedule do not exceed R5 000;

[Paragraph (c) amended by section 3(d) of Act 90 of 1962, by section 5(a) of Act 55 of 1966 and by section 4(1)(h) of Act 69 of 1975, substituted by section 2(1)(f) of Act 121 of 1984 and amended by section 7(1)(n) of Act 24 of 2011 and by section 5(1)(b) of Act 15 of 2016 effective on 1 March, 2017 and applicable in respect of years of assessment ending on or after that date. Paragraph (vii) added by section 4(1)(d) of Act 20 of 2021 effective on 1 March, 2022 and applicable in respect of years of assessment commencing on or after that date]

(cA)   any amount received by or accrued to any person who –

(i)      ……….

[Subparagraph (i) deleted by section 1 of Act 43 of 2014 effective on 1 March 2015]

 

(ii)     is or was a labour broker as defined in the Fourth Schedule (other than a labour broker in respect of which a certificate of exemption has been issued in terms of that Schedule);

 

(iii)    is or was a personal service provider as defined in the Fourth Schedule; or

 

(iv)    was a personal service company or personal service trust as defined in the Fourth Schedule prior to section 66 of the Revenue Laws Amendment Act, 2008, coming into operation,

 

as consideration for any restraint of trade imposed on such person;

(cB)  any amount received by or accrued to any natural person as consideration for any restraint of trade imposed on that person in respect or by virtue of-

(i)      employment or the holding of any office; or

(ii)     any past or future employment or the holding of an office;

[Paragraph (cB) to be inserted by section 1 of Act 43 of 2014 effective on 1 March 2015]

(d)     any amount (other than an amount contemplated in paragraph (a)), including any voluntary award, received or accrued-

(i)      in respect of the relinquishment, termination, loss, repudiation, cancellation or variation of any office or employment or of any appointment (or right or claim to be appointed) to any office or employment;

 

(ii)     by or to a person, or dependant or nominee of the person, directly or indirectly in respect of proceeds from a policy of insurance where the person is or was an employee or director of the policyholder; or

 

(iii)     by or to a person, or dependant or nominee of the person, in respect of any policy of insurance (other than a risk policy with no cash value or surrender value) that has been ceded to-

(aa)    the person;

 

(bb)   a dependant or nominee of the person; or

 

for the benefit of the person, or dependant or nominee of the person, by-

(A)    the employer or former employer of the person; or

 

(B)     the company of which the person is or was a director:

Provided that-

(aa)   the provisions of subparagraphs (i) and (ii) shall not apply to any lump sum award from any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund;

 

(bb)   any such amount which becomes payable in consequence of or following upon the death of any person shall be deemed to be an amount which accrued to such person immediately prior to his or her death;

 

(cc)    for the purposes of subparagraphs (ii) and (iii), any amount received by or accrued to a dependant or nominee of a person shall be deemed to be received by or to accrue to that person;

(e)     a retirement fund lump sum benefit or retirement fund lump sum withdrawal benefit other than any amount included under paragraph(eA);

(eA)   where, in relation to a member who effectively remains in the employment of the same employer, or the dependants or nominees of a deceased member-

(i)      any amount in a fund contemplated in paragraph (a), (b) or (d) of the definition of “pension fund” or paragraph (a), (b) or (c) of the definition of “provident fund”, the rules of which provide that on retirement of such member a portion of his benefit has to be taken in the form of an annuity, has been transferred to a fund, the rules of which entitle such member, or the dependants or nominees of a deceased member, to a benefit on retirement in the form of a lump sum exceeding one-third of the capitalised value of all benefits (including lump sum payments and annuities); or

[Subparagraph (i) substituted by section 5(1)(c) of Act 15 of 2016 and by section 1(1)(c) of Act 20 of 2022 deemed effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date]

(ii)      a fund contemplated in paragraph (a), (b) or (d) of the definition of “pension fund” or paragraph (a), (b) or (c) of the definition of “provident fund”, the rules of which provide that on retirement of such member a portion of his benefit has to be taken in the form of an annuity, is wholly or partially converted by way of an amendment to its rules or otherwise, to entitle such member, or the dependants or nominees of a deceased member, to a benefit on retirement in the form of a lump sum exceeding one-third of the capitalised value of all benefits (including lump sum payments and annuities); or

[Subparagraph (ii) amended by section 19(1)(h) of Act 30 of 1998 and substituted by section 5(1)(c) of Act 15 of 2016 and by section 1(1)(c) of Act 20 of 2022 deemed effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date]

(iii)    any amount in a fund contemplated in paragraph (a), (b) or (d) of the definition of “pension fund” or paragraph (a), (b) or (c) of the definition of “provident fund” has become payable to the member or is being utilised to redeem a debt,

[Subparagraph (iii) added by section 19(1)(i) of Act 30 of 1998 and substituted by section 5(1)(c) of Act 15 of 2016 and by section 1(1)(c) of Act 20 of 2022 deemed effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date]

 

an amount equal to two–thirds-

(aa)   of the amount so transferred; or

 

(bb)   in the case of a conversion, of the amount representing the amount converted for the benefit or ultimate benefit of the member or the dependants or nominees of the deceased member, and such amount shall be deemed to have been received by or accrued to or in favour of such member, dependants or nominees, as the case may be: Provided that where a court granting a decree of divorce in respect of such member has made an order that any part of such amount shall be paid to the former spouse of such member, as provided for in section 7(8) of the Divorce Act, 1979 (Act No. 70 of 1979), such part shall for the purposes of this paragraph be deemed to be an amount converted for the benefit or ultimate benefit of such member; or

 

(cc)    in the case of an amount becoming payable to a member or being utilised to redeem a debt, of the amount so payable or so utilised:

Provided that the Commissioner may, on application by a fund, in particular circumstances, increase the proportion of one–third contemplated in subparagraph (i) up to a maximum of one–half on the following conditions:

(a)     that on 12 March 1997 the proportion of the benefit on retirement in such fund that could be taken in the form of a lump sum was greater than one–third, but not greater than one–half, of the total capitalized value of all benefits;

 

(b)     that the rules of such fund are amended so that the maximum proportion of such member’s benefit on retirement that can be taken in the form of a lump sum is one–third of the total capitalized value of all benefits; and

 

(c)     such further conditions as the Commissioner may determine from time to time;

(eC)     . . . . . .

[Paragraph (eC) inserted by section 4(1)(f) of Act 60 of 2008 and deleted by section 7(1)(j) of Act 17 of 2009 deemed effective on 1 March, 2009 and applicable in respect of amounts awarded on or after that date]

(eD)  a savings withdrawal benefit;

[Paragraph (eD) inserted by section 1(1)(a) 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)]

(f)      any amount received or accrued in commutation of amounts due under any contract of employment or service;

(g)     any amount received or accrued from another person, as a premium or consideration in the nature of a premium –

(i)      for the use or occupation or the right of use or occupation of land or buildings; or

 

(ii)     for the use or the right of use of plant or machinery; or

 

(ii)bis for the use or the right of use of any motion picture film or any film or video tape or disc for use in connection with television or any sound recording or advertising matter connected with such motion picture film, film or video tape or disc; or

 

(iii)    for the use or right of use of any patent as defined in the Patents Act or any design as defined in the Designs Act or any trade mark as defined in the Trade Marks Act or any copyright as defined in the Copyright Act or any model, pattern, plan, formula or process or any other property or right of a similar nature;

(gA)  any amount received or accrued from another person as consideration for the imparting of or the undertaking to impart any scientific, technical, industrial or commercial knowledge or information, or for the rendering of or the undertaking to render any assistance or service in connection with the application or utilization of such knowledge or information;

(h)     in the case of any person to whom, in terms of any agreement relating to the grant to any other person of the right of use or occupation of land or buildings, or by virtue of the cession of any rights under any such agreement, there has accrued in any such year or period the right to have improvements effected on the land or to the buildings by any other person –

(i)      the amount stipulated in the agreement as the value of the improvements or as the amount to be expended on the improvements; or

 

(ii)     if no amount is so stipulated, an amount representing the fair and reasonable value of the improvements;

(i)      the cash equivalent, as determined under the provisions of the Seventh Schedule, of the value during the year of assessment of any benefit or advantage granted in respect of employment or to the holder of any office, being a taxable benefit as defined in the said Schedule, and any amount required to be included in the taxpayer’s income under section 8A;

(j)      so much of the sum of any amounts received or accrued during any year of assessment in respect of disposals of assets the cost of which has in whole or in part been included in capital expenditure taken into account (whether under this Act or any previous Income Tax Act) for the purposes of any deduction in respect of any mine under section 15(a) of this Act or the corresponding provisions of any previous Income Tax Act, as exceeds the sum of so much of any capital expenditure as in the case of such mine is unredeemed at the commencement of the said year of assessment and the capital expenditure that is incurred during that year in respect of such mine, as determined before applying the definition of “capital expenditure incurred” in section 36(11);

(jA)   any amount received by or accrued to any person during the year of assessment in respect of the disposal of any asset manufactured, produced, constructed or assembled by that person, which is similar to any other asset manufactured, produced, constructed or assembled by that person for purposes of manufacture, sale or exchange by that person or on that person’s behalf;

(k)     any amount received or accrued by way of a dividend or a foreign dividend;

(l)      any amount received or accrued by way of grant or subsidy in respect of any soil erosion works referred to in section 17A(1) or any of the matters mentioned in items (a) to (i), inclusive, of paragraph 12(1) of the First Schedule;

(lA)   any amount received by or accrued to a company or association as contemplated in subparagraph (ii) of section 11E;

(lC)   any amount received by or accrued to a person by way of a government grant as defined in section 12P;

[Paragraph (lC) inserted by section 5 of Act 15 of 2016 effective on 19 January 2017]

(m)    any amount received or accrued in respect of a policy of insurance of which the taxpayer is the policyholder, where the policy relates to the death, disablement or illness of an employee or director (or former employee or director) of the taxpayer, including by way of any debt: Provided that any amount so received or accrued shall be reduced by the amount of any such debt which is or has been included in the taxpayer’s gross income;

[Paragraph (m) substituted by section 4(1)(d) of Act 88 of 1971 and by section 3(1)(b) of Act 91 of 1982, amended by section 2(1)(d) of Act 94 of 1983, substituted by section 7(1)(v) of Act 24 of 2011, amended by section 2(1)(q) of Act 22 of 2012 and by section 2(1)(d) of Act 17 of 2017 and substituted by section 2(1)(d) of Act 23 of 2020]

(n)     any amount which in terms of any other provision of this Act is specifically required to be included in the taxpayer’s income and that amount must for the purposes of this paragraph be deemed to have been received by or to have accrued to the taxpayer:

[Paragraph (n) substituted by section 3(1)(g) of Act 32 of 2005 and by section 2(1)(c) of Act 34 of 2019]

Provided that where during any year of assessment a person has become entitled to any amount which is payable on a date or dates falling after the last day of such year, that amount shall be deemed to have accrued to the person during such year;