‘employer’ means-
(a) where only one employer is party to a registered learnership agreement, that employer; or
(b) in the case where more than one employer is a party to a registered learnership agreement, the employer which is identified in that agreement as the lead employer;
(n) ……….
[Paragraph (n) amended by section 8 of Act 72 of 1963, substituted by section 12 of Act 55 of 1966 and section 9 of Act 76 of 1968, amended by section 9 of Act 65 of 1973 and section 9 of Act 69 of 1975, substituted by section 9 of Act 113 of 1977, amended by section 5 of Act 101 of 1978, section 8 of Act 104 of 1979, section 7 of Act 91 of 1982, section 10 of Act 94 of 1983, section 11 of Act 121 of 1984, section 8 of Act 90 of 1988, section 8 of Act 70 of 1989, section 11 of Act 101 of 1990, section 11 of Act 141 of 1992, section 9 of Act 113 of 1993, section 12 of Act 21 of 1995, section 20 of Act 53 of 1999, section 2 and section 11 of Act 8 of 2007, section 1 and section 10 of Act 3 of 2008, section 18 of Act 60 of 2008 and substituted by section 14 of Act 17 of 2009, amended by section 30 of Act 24 of 2011, deleted by section 27(1)(m) of Act 31 of 2013 effective on 1 March 2016, operation date specified in section 27(1)(m) of Act 31 of 2013 as substituted by section 122(1)(b) of Act 43 of 2014]
(1) For the purposes of this section –
“affected asset” means any –
(a) pipeline used for the transportation of natural oil;
(aA) pipeline for the transportation of water used by power stations in the process of generating electricity;
(b) line or cable used for the transmission of electricity;
(c) line or cable used for the transmission of electronic communications; and
(d) railway line used for the transportation of persons, goods or things,
and includes any earthworks or supporting structures and equipment forming part of or ancillary to such pipeline, transmission line or cable or railway line and any improvement to such pipeline, transmission line or cable or railway line;
‘learner’ means a learner as defined in section 1 of the Skills Development Act, 1998;
(m) any amount paid by way of annuity during the year of assessment by any taxpayer –
(i) to a former employee who has retired from the taxpayer’s employ on grounds of old age, ill health or infirmity; or
(ii) to a person who was for a period of at least five years a partner in an undertaking carried on by the taxpayer and who retired from the partnership in respect of that undertaking on grounds of old age, ill health or infirmity, provided that the amount so paid to such person is reasonable, having regard to the services rendered by such person as a partner in such undertaking prior to his retirement and the profits made in such undertaking, and that the said amount does not represent consideration payable to such person in respect of his interest in the partnership; or
(iii) to any person who is dependent for his maintenance upon a former employee or a former partner in an undertaking carried on by the taxpayer or (where such former employee or former partner is deceased) was so dependent immediately prior to his death;
“natural oil” means any liquid or solid hydrocarbon or combustible gas existing in a natural condition in the earth’s crust and includes any refined by–products of such liquid or solid hydrocarbon or combustible gas.
‘registered learnership agreement’ means a learnership agreement that is-
(a) registered in accordance with the Skills Development Act, 1998; and
(b) entered into between a learner and an employer before 1 April 2027;
[Paragraph (b) substituted by section 30(1)(a) of Act 15 of 2016 and by section 14(1) of Act 20 of 2021 (as substituted by section 65(1) of Act 42 of 2024) effective on 1 April, 2022 and applicable in respect of learnership agreements entered into on or after that date]
[Definition of “registered learnership agreement” amended by section 36 of Act 24 of 2011 and substituted by section 27(1)(b) of Act 22 of 2012 effective on 1 January, 2013 and applicable in respect of learnership agreements entered into on or after that date]
‘qualifying company’ means any company if –
(a) that company is a resident;
(b) the company is not a controlled group company in relation to a group of companies of which a venture capital company to which that company has issued any share forms part from the date of issue of any such share and at any time during any year of assessment after that date;
[Paragraph (b) substituted by section 38(1)(c) of Act 24 of 2011, by section 29(1)(a) of Act 23 of 2018 and by section 17(1)(a) of Act 34 of 2019]
(c) the tax affairs of the company are in order and the company has complied with all the relevant provisions of the laws administered by the Commissioner;
(d) the company is an unlisted company as defined in section 41 or a junior mining company;
(e) the company is not carrying on any impermissible trade;
[Paragraph (e) substituted by section 25 of Act 17 of 2009 and amended by section 29 of Act 23 of 2018 effective on 1 January 2019 and applies in respect of participation rights acquired on or after that date]
(f) during any year of assessment of that company that ends after the expiry of a period of 36 months commencing on the first date on which that company issued any share to a venture capital company-
(i) the sum of the investment income, as defined in section 12E(4)(c), derived by that company does not exceed an amount equal to 20 per cent of the gross income of that company for that year; and
(ii) not more than 50 per cent of the aggregate amount received by or that accrued to that company from the carrying on of any trade was derived, directly or indirectly, from a person-
(aa) who holds a share in that venture capital company; or
(bb) who is a connected person in relation to a person referred to in item (aa);
[Paragraph (f) substituted by section 25 of Act 17 of 2009 and section 29 of Act 23 of 2018 effective on 24 October 2018]
(g) no person who holds a share in a venture capital company to which that company has issued any share holds, directly or indirectly and whether alone or together with any connected person in relation to that person, more than 50 per cent of the participation rights, as defined in section 9D(1), or of the voting rights in that company; and
[Paragraph (g) deleted by section 25 of Act 17 of 2009 and re-inserted by section 29 of Act 23 of 2018 effective on 1 January 2019 and applies in respect of participation rights acquired on or after that date]
(h) that company does not carry on any trade in relation to a venture, business or undertaking or part thereof that was acquired by that company, directly or indirectly, from a person-
(i) who holds a share in a venture capital company to which that company has issued any share; or
(ii) who is a connected person in relation to a person referred to in subparagraph (i);
[Paragraph (h) inserted by section 29 of Act 23 of 2018 effective on 1 January 2019, applies in respect of any trade carried on which commenced on or after that date]
“National Film and Video Foundation” means the National Film and Video Foundation established by the National Film and Video Foundation Act, 1997 (Act No. 73 of 1997); and
“qualifying share” means an equity share held by a venture capital company which is issued to that company by a qualifying company, and does not include any share which-
(b) would have constituted a hybrid equity instrument, as defined in section 8E(1), but for the three-year period requirement contemplated in paragraph (b)(i) of the definition of “hybrid equity instrument” in that section; or
[Paragraph (b) substituted by section 29 of Act 23 of 2018 effective on 1 January 2019 applies in respect of years of assessment commencing on or after that date]
(c) constitutes a third-party backed share as defined in section 8EA(1);