(h)     any amount of interest which is received by or accrues to any person that is not a resident, unless-

[Words preceding subparagraph (i) substituted by section 16 of Act 17 of 2017 effective on 18 December 2017]

(i)      that person is a natural person who was physically present in the Republic for a period exceeding 183 days in aggregate during the twelve-month period preceding the date on which the interest is received by or accrues to that person; or

[Subparagraph (i) substituted by section 22 of Act 23 of 2018 effective on 17 January 2019]

(ii)     the debt from which the interest arises is effectively connected to a permanent establishment of that person in the Republic;

(cA)   the receipts and accruals of –

(i)      any institution, board or body (other than a company as defined in the Companies Act, any co-operative, close corporation, trust or water services provider) established by or under any law and which, in the furtherance of its sole or principal object-

(aa)  conducts scientific, technical or industrial research;

(bb)   provides necessary or useful commodities, amenities or services to the State (including any provincial administration) or members of the general public; or

(cc)   carries on activities (including the rendering of financial assistance by way of loans or otherwise) designed to promote commerce, industry or agriculture or any branch thereof;

(ii)     any association, corporation or company contemplated in paragraph (a) of the definition of “company” in section 1, all the shares of which are held by any such institution, board or body, if the operations of such association, corporation or company are ancillary or complementary to the object of such institution, board or body:

Provided that such institution, board, body or company –

(a)     has been approved by the Commissioner subject to such conditions as he may deem necessary to ensure that the activities of such institution, board, body or company are wholly or mainly directed to the furtherance of its sole or principal object;

(b)     is by law or under its constitution –

(i)      not permitted to distribute any amount to any person, other than, in the case of such company, to the holders of shares in that company;

[Subparagraph (i) substituted by section 23(1)(c) of Act 31 of 2013 and by section 10(1)(a) of Act 23 of 2020]

(ii)     required to utilize its funds solely for investment or the object for which it has been established; and

(iii)    required on dissolution-

(aa)   where the institution, board, body or company is established under any law, to transfer its assets to some other institution, board or body which has been granted exemption from tax in terms of this paragraph and which has objects similar to those of such institution, board, body or company; or

(bb)   where the institution, board or body is established by law, to transfer its assets to –

(A)    some other institution, board or body which has been granted exemption from tax in terms of this paragraph and which has objects similar to those of such institution, board, body or company; or

(B)    to the State:

Provided further that –

(a)     where the Commissioner is satisfied that any such institution, board, body or company has during any year of assessment failed to comply with the provisions of this paragraph, he may withdraw his approval of the institution, board, body or company with effect from the commencement of that year of assessment;

(b)     where the institution, board, body or company fails to transfer, or take reasonable steps to transfer, its assets as contemplated in paragraph (b) (iii) of the first proviso, the accumulated net revenue which has not been distributed shall be deemed for the purposes of this Act to be an amount of taxable income which accrued to such institution, board, body or company during the year of assessment contemplated in paragraph (a); and

(c)     ……….

(gH)   any amount received or accrued in respect of a policy of insurance where-

(i)      the policy relates to death, disablement or illness of an employee or director, or former employee or director, of the person that is the policyholder; and

[Subparagraph (i) substituted by section 16 of Act 17 of 2017 effective on 18 December 2017]

(ii)     no amount of premiums payable in respect of that policy on or after 1 March 2012 is deductible from the income of that person for the purposes of determining the taxable income derived by the person from carrying on any trade;

(c)

(i)      ……….

(ii)     any pension payable to any person or his surviving spouse by reason of such person having occupied the office of State President or Vice State President: Provided that the provisions of this subparagraph shall not apply to any amount payable to any person or his surviving spouse by reason of such person having occupied the office of President as elected in terms of section 77 of the Constitution;

(iii)    the salary and emoluments payable to any person who holds office in the Republic as an official of any government, other than the Government of the Republic, provided such person is stationed in the Republic for that purpose and is not ordinarily resident in the Republic;

(iv)    any salary and emoluments payable to any domestic or private servant of any person referred to in subparagraph (iii) in respect of domestic or private services rendered or to be rendered by such servant to such person if such servant is not a South African citizen and is not ordinarily resident in the Republic;

(v)     any salary and emoluments payable to any subject of a foreign state who is temporarily employed in the Republic, provided the exemption of such salary and emoluments is authorized by an agreement entered into by the governments of such foreign state and the Republic;

(vi)    any salary and emoluments payable to any person that is a subject of a foreign state and who is not a resident to the extent that that salary or those emoluments are paid by –

(aa)   an institution or body contemplated in subsection (1)(bA)(ii) in respect of any agreement contemplated therein; or

(bb)   an organisation contemplated in subsection (1)(bA)(iii) in respect of services rendered in relation to a project contemplated therein.

(nB)   any benefit or advantage accruing to any employee (as defined in paragraph 1 of the Seventh Schedule) by reason of the fact that his employer (as defined in the said paragraph), has, in consequence of the transfer of the employee from one place of employment to another place of employment or the appointment of the employee as an employee of the employer or the termination of the employee’s employment, borne the expense –

(i)      of transporting such employee, members of his household and the personal goods and possessions of himself and the members of his household from his previous place of residence to his new place of residence; or

(ii)     of the costs which have been incurred by the employee in respect of the sale of his or her previous residence and in settling in permanent residential accommodation at his or her new place of residence; or

[Subpara (ii) substituted by section 7 of Act 65 of 1986 and section 16 of Act 25 of 2015 effective on 1 January 2016]

(iii)    of hiring residential accommodation in an hotel or elsewhere for the employee or members of his household during the period ending 183 days after his transfer took effect or after he took up his appointment, as the case may be, if such residential accommodation was occupied temporarily pending the obtaining of permanent residential accommodation;

(nA)  where an employee is as a condition of his employment required while on duty to wear a special uniform which is clearly distinguishable from ordinary clothing, the value of any such uniform given to the employee by his employer, or so much of any allowance made by the employer to the employee in lieu of any such uniform as is reasonable;

(mB)  any benefit or allowance payable in terms of the Unemployment Insurance Act, 2001 (Act No. 63 of 2001);

(lA)    any amount received by or accrued to any person who is not a resident if that amount is subject to tax on foreign entertainers and sportspersons in terms of Part IIIA of this Chapter;

(l)      the amount of any royalty as defined in section 49A which is received by or accrues to any person that is not a resident, unless-

(i)      that person is a natural person who was physically present in the Republic for a period exceeding 183 days in aggregate during the twelve-month period preceding the date on which the amount is received by or accrues to that person; or

(ii)     the intellectual property or the knowledge or information in respect of which that royalty is paid is effectively connected with a permanent establishment of that person in the Republic;

[Paragraph (l) deleted by section 10 of Act 101 of 90. inserted by section 13 of Act 59 of 2000 and substituted by section 19 of Act 22 of 2012 and section 14 of Act 43 of 2014 effective on 1 January 2015]