‘repo rate’ means the interest rate at which the South African Reserve Bank enters into a repurchase agreement contemplated in section 10(1)(j) of the South African Reserve Bank Act.
Category: Definitions – ITA
“Representative employer” definition of Fourth Schedule
“representative employer” means –
(a) in the case of any company, the public officer of that company, or, in the event of such company being placed under business rescue in terms of Chapter 6 of the Companies Act, in liquidation or under judicial management, the business rescue practitioner, liquidator or judicial manager, as the case may be;
[Paragraph (a) substituted by section 7 of Act 44 of 2014 effective on 20 January 2015]
(b) in the case of any municipality or any body corporate or unincorporated (other than a company or a partnership), any manager, secretary, officer or other person responsible for paying remuneration on behalf of such municipality or body;
(c) in the case of a person under legal disability, any guardian, curator, administrator or other person having the management or control of the affairs of the person under legal disability; or
(d) in the case of any employer who is not resident in the Republic, any agent of such employer having authority to pay remuneration,
who resides in the Republic, but nothing in this definition shall be construed as relieving any person from any liability, responsibility or duty imposed upon him or her by this Schedule; and
“Representative taxpayer” definition of section 1 of ITA
“representative taxpayer” means a natural person who resides in the Republic and-
(a) in respect of the income of a company, the public officer thereof, or in the event of such company being placed under business rescue in terms of Chapter 6 of the Companies Act, the business rescue practitioner;
[Paragraph (a) substituted by section 1 of Act 44 of 2014 effective on 20 January 2015]
(b) in respect of the income under his or her management, disposition or control, the agent of any person;
(c) in respect of income which is the subject of any trust or in respect of the income of any minor or any other person under legal disability, the trustee, guardian, curator or other person entitled to the receipt, management, disposal or control of such income or remitting or paying to or receiving moneys on behalf of such person under disability;
[Paragraph (c) substituted by section 4 of Act 21 of 2012 and by section 2 of Act 24 of 2020]
(d) in respect of income paid under the decree or order of any court or judge to any receiver or other person, such receiver or person, whoever may be entitled to the benefit of such income, and whether or not it accrues to any person on a contingency or an uncertain event;
(e) in respect of the income received by or accrued to any deceased person during his lifetime and the income received by or accrued to the estate of any deceased person, the executor or administrator of the estate of such deceased person;
(f) in respect of the income received by or accrued to an insolvent estate, the trustee or administrator of such insolvent estate;
Provided that for the purposes of this definition income includes any amount received or accrued or deemed to have been received or accrued in consequence of the disposal of any asset envisaged in the Eighth Schedule;
“Republic” definition of section 1 of ITA
“Republic” means the Republic of South Africa and, when used in a geographical sense, includes the territorial sea thereof as well as any area outside the territorial sea which has been or may be designated, under international law and the laws of South Africa, as areas within which South Africa may exercise sovereign rights or jurisdiction with regard to the exploration or exploitation of natural resources;
“Repurchase agreement” definition of section 24J of ITA
“repurchase agreement” means the obtaining of money (which money shall for the purposes of this section be deemed to have been so obtained by way of a loan) through the disposal of an asset by any person to any other person subject to an agreement in terms of which such person undertakes to acquire from such other person at a future date the asset so disposed of or any other asset issued by the issuer of, and which has been so issued subject to the same conditions regarding term, interest rate and price as, the asset so disposed of;
“Resale agreement” definition of section 24J of ITA
“resale agreement” means the provision of money (which money shall for the purposes of this section be deemed to have been so provided in the form of a loan) through the acquisition of an asset by any person from any other person subject to an agreement in terms of which such person undertakes to dispose of to such other person at a future date the asset so acquired or any other asset issued by the issuer of, and which has been so issued subject to the same conditions regarding term, interest rate and price as, the asset so acquired;
“Research and development” definition of section 11D of ITA
(1) For the purposes of this section “scientific or technological research and development” means systematic investigative or systematic experimental activities aimed at resolving scientific or technological uncertainty and the resolution of which is not readily deducible by a person skilled in the relevant scientific or technological field for the purpose of—
(a) discovering new scientific or technological knowledge;
[Paragraph (a) substituted by section 12(1)(b) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of applications received and expenditure incurred on or after that date]
(b) creating or developing new or significantly improved products, processes or services;
[Paragraph (b) amended by section 18(1)(a) of Act 43 of 2014 and substituted by section 12(1)(c) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of applications received and expenditure incurred on or after that date]
(c) . . . . . .
[Paragraph (c) amended by section 18(1)(b) of Act 43 of 2014(effective date in section 18(3) of Act 43 of 2014 as substituted section 64(1) of Act 17 of 2023) and deleted by section 12(1)(d) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of applications received and expenditure incurred on or after that date]
(d) creating or developing a multisource pharmaceutical product, as defined in the World Health Organisation Technical Report Series, No. 937, 2006 Annex 7 Multisource (generic) pharmaceutical products: guidelines on registration requirements to establish interchangeability issued by the World Health Organisation, conforming to Regulation 344 of 23 April 2015 and any requirements as must be prescribed by regulations made by the Minister after consultation with the Minister of Higher Education, Science and Innovation; or
[Paragraph (d) inserted by section 18(1)(c) of Act 43 of 2014(effective date in section 18(3) of Act 43 of 2014 as substituted section 64(1) of Act 17 of 2023) and substituted by section 12(1)(e) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of applications received and expenditure incurred on or after that date]
(e) conducting a clinical trial as defined in Appendix F of the Guidelines for good practice in the conduct of clinical trials with human participants in South Africa issued by the Department of Health (2006), conforming to Regulation 346 of 23 April 2015 and any requirements as must be prescribed by regulations made by the Minister after consultation with the Minister of Higher Education, Science and Innovation;
[Paragraph (e) inserted by section 18(1)(c) of Act 43 of 2014 and substituted by section 12(1)(f) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of applications received and expenditure incurred on or after that date]
Provided that for the purposes of this definition, “scientific or technological research and development” does not include activities for the purpose of-
(a) routine testing, analysis, collection of information or quality control in the normal course of business;
(b) . . . . . .
[Paragraph (b) amended by section 18(1)(a) of Act 43 of 2014(effective date in section 18(2) of Act 43 of 2014 as substituted section 64(1) of Act 17 of 2023) and substituted by section 18(1)(d) of Act 43 of 2014 and deleted by section 12(1)(h) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of applications received and expenditure incurred on or after that date]
(c) market research, market testing or sales promotion;
(d) social science research, including the arts and humanities;
(e) oil and gas or mineral exploration or prospecting except research and development carried on to develop technology used for that exploration or prospecting;
(f) the creation or development of financial instruments or financial products;
(g) the creation or enhancement of trademarks or goodwill; or
(h) any expenditure contemplated in section 11(gB) or (gC).
[Subsection (1) substituted by section 13(1)(a) of Act 8 of 2007, amended by section 19(1)(a) of Act 35 of 2007 and by section 19(1) of Act 60 of 2008, substituted by section 32(1) of Act 24 of 2011(effective date in section 32(2) of Act 24 of 2011 as substituted section 168(1) of Act 22 of 2012 and by section 57(1) of Act 17 of 2023) and by section 29(1)(a) of Act 31 of 2013(effective date in section 29(2) of Act 31 of 2013 as substituted section 62(1) of Act 17 of 2023) and amended by section 12(1)(g) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of applications received and expenditure incurred on or after that date]
“Residence” definition of Eighth Schedule
“residence” means a residence contemplated in paragraph 44;
“Residence” definition of paragraph 44 of Eighth Schedule
“residence” means any structure, including a boat, caravan or mobile home, which is used as a place of residence by a natural person, together with any appurtenance belonging thereto and enjoyed therewith.
“Resident” definition of section 1 of ITA
“resident” means any-
(a) natural person who is-
(i) ordinarily resident in the Republic; or
(ii) not at any time during the relevant year of assessment ordinarily resident in the Republic, if that person was physically present in the Republic-
(aa) for a period or periods exceeding 91 days in aggregate during the relevant year of assessment, as well as for a period or periods exceeding 91 days in aggregate during each of the five years of assessment preceding such year of assessment; and
(bb) for a period or periods exceeding 915 days in aggregate during those five preceding years of assessment:
in which case that person will be a resident with effect from the first day of that relevant year of assessment:
Provided that-
(A) a day shall include a part of a day, but shall not include any day that a person is in transit through the Republic between two places outside the Republic and that person does not formally enter the Republic through a ‘port of entry’ as contemplated in section 9(1) of the Immigration Act, 2002 (Act No. 13 of 2002), or at any other place as may be permitted by the Director General of the Department of Home Affairs or the Minister of Home Affairs in terms of that Act; and
(B) where a person who is a resident in terms of this subparagraph is physically outside the Republic for a continuous period of at least 330 full days immediately after the day on which such person ceases to be physically present in the Republic, such person shall be deemed not to have been a resident from the day on which such person so ceased to be physically present in the Republic; or
(b) person (other than a natural person) which is incorporated, established or formed in the Republic or which has its place of effective management in the Republic,
but does not include any person who is deemed to be exclusively a resident of another country for purposes of the application of any agreement entered into between the governments of the Republic and that other country for the avoidance of double taxation;
: Provided that where any person that is a resident ceases to be a resident during a year of assessment, that person must be regarded as not being a resident from the day on which that person ceases to be a resident;
: Provided further that in determining whether a person that is a foreign investment entity has its place of effective management in the Republic, no regard must be had to any activity that-
(a) constitutes-
(i) a financial service as defined in section 1 of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002); or
(ii) any service that is incidental to a financial service contemplated in subparagraph (i) where the incidental service is in respect of a financial product that is exempted from the provisions of that Act, as contemplated in section 1(2) of that Act; and
(b) is carried on by a financial service provider as defined in section 1 of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002), in terms of a licence issued to that financial service provider under section 8 of that Act;