Category: CHAPTER II – The Taxes (ITA)

“Market value” definition of section 29B of ITA

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‘market value’, in relation to any asset placed in any policyholder fund as contemplated in section 29A(4), means-

(a)     where that asset constitutes a financial instrument that is listed on-

(i)      an exchange as defined in section 1 of the Financial Markets Act and licensed under section 9 of that Act; or

(ii)     an exchange in a country other than the Republic which has been recognised by the Minister as contemplated in paragraph (c) of the definition of ‘recognised exchange’ in paragraph 1 of the Eighth Schedule,

the sum which a person having the right to freely dispose of that asset might reasonably expect to obtain from a sale of that asset in the open market; or

(b)     where that asset is an asset other than an asset contemplated in paragraph (a), the value of that asset as taken into account in determining the investment value of policies as reported to the owners of the policies in respect of the policyholder fund in which the asset is so placed; and

“Category III Financial Services Provider” definition of section 29B of ITA

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(1)     For the purposes of this section, unless the context otherwise indicates, any word or expression that has been defined in section 29A must bear the same meaning as defined in that section, and-

‘Category III Financial Services Provider’ means a financial services provider as defined in section 1 of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002), that has been issued with a Category III licence in terms of that Act;

Section 26 (ITA) – Determination of taxable income derived from farming

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26.  Determination of taxable income derived from farming

 

(1)     The taxable income of any person carrying on pastoral, agricultural or other farming operations shall, in so far as it is derived from such operations, be determined in accordance with the provisions of this Act but subject to the provisions of the First Schedule.

 

(2)     In the case of any person who has discontinued carrying on pastoral, agricultural or other farming operations and is still in possession of any livestock or produce, or has entered into a “sheep lease” or similar agreement relating to livestock or produce, which has been taken into account and in respect of which expenditure under the provisions of this Act or any previous Income Tax Act has been allowed in the determination of the taxable income derived by such person when such operations were carried on, the provisions of this Act, but subject to the provisions of paragraphs 1, 2, 3, 4, 5, 6, 7, 9, or 11 of the First Schedule, shall continue to be applicable to that person in respect of such livestock or produce, as the case may be, until the year of assessment during which he disposes of the last of such livestock or produce, notwithstanding the fact that such operations have been discontinued.

“Value of liabilities” definition of section 29A of ITA

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“value of liabilities” means, in respect of a policyholder fund and a risk policy fund the adjusted IFRS value plus so much of all other liabilities allocated to that fund that have not been taken into account in determining the adjusted IFRS value: Provided that any amount that is payable to or receivable from a cell owner, referred to in the definition of “cell structure” in section 1 of the Insurance Act, that does not relate to a policy, must be disregarded.

[Definition of “value of liabilities” substituted by section 47(1)(c) of Act 43 of 2014, by section 50(1)(c) of Act 15 of 2016, by section 53(1)(c) of Act 25 of 2015(effective date in section 53(2) of Act 25 of 2015 as substituted by section 108(1) of Act 23 of 2018) and by section 15(1)(b) of Act 20 of 2022, amended by section 32(1)(b) of Act 17 of 2023 and substituted by section 25(1)(b) of Act 42 of 2024 deemed to have come into operation on 1 January, 2023 and applicable in respect of years of assessment commencing on or after that date]

Section 26B (ITA) – Taxation of oil and gas companies

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26B.     Taxation of oil and gas companies

 

(1)     The taxable income of any oil and gas company, as defined in the Tenth Schedule, shall be determined in accordance with the provisions of this Act but subject to the provisions of that Schedule.

 

(2)     The dividends tax levied in respect of the amount of any dividend, as defined in section 64D, that is paid as contemplated in section 64E(2) by an oil and gas company, as defined in the Tenth Schedule, out of amounts attributable to its oil and gas income, as defined in that Schedule, shall be determined in accordance with this Act but subject to that Schedule.

 

(3)     Part IIA of Chapter III of this Act applies to the Tenth Schedule notwithstanding any provision to the contrary contained in subsections (1) and (2).