(4)     For the purposes of this section-

(a)     ‘small business corporation’ means any close corporation or co-operative or any private company as defined in section 1 of the Companies Act or a personal liability company as contemplated in section 8(2)(c) of the Companies Act if at all times during the year of assessment all the holders of shares in that company, co-operative, close corporation or personal liability company are natural persons, where-

[Words preceding subparagraph (i) substituted by section 23 of Act 7 of 2010, section 35 of Act 31 of 2013 and section 29 of Act 15 of 2016 effective on 1 May 2011, applies in respect of years of assessment ending on or after that date]

(i)      the gross income for the year of assessment does not exceed and amount equal to R20 million: Provided that where the close corporation, co-operative or company during the relevant year of assessment carries on any trade, for a period which is less than 12 months, that amount shall be reduced to an amount which bears to that amount, the same ratio as the number of months (in the determination of which a part of a month shall be reckoned as a full month), during which that company, co-operative or close corporation carried on that trade bears to 12 months;

[Proviso to paragraph (i) substituted by section 26 of Act 17 of 2017 effective on 18 December 2017]

(ii)     at any time during the year of assessment, no holder of shares in the company or member of the close corporation or co-operative holds any shares or has any interest in the equity of any other company as defined in section 1, other than-

[Words preceding item (aa) substituted by section 20 of Act 43 of 2014 effective on 20 January 2015]

(aa)    a company contemplated in paragraph (a) of the definition of ‘listed company’;

(bb)   any portfolio in a collective investment scheme contemplated in paragraph (e) of the definition of ‘company’;

(cc)    a company contemplated in section 10(1)(e)(i)(aa), (bb) or (cc);

(dd)   less than 5 per cent of the interest in a social or consumer co-operative or a co-operative burial society as defined in section 1 of the Co-operatives Act, 2005 (Act No. 14 of 2005), or any other similar co-operative if all of the income derived from the trade of that co-operative during any year of assessment is solely derived from its members;

(ee)   any friendly society as defined in section 1 of the Friendly Societies Act, 1956 (Act No. 25 of 1956);

(ff)     less than 5 per cent of the interest in a primary savings co-operative bank or a primary savings and loans co-operative bank as defined in the Co-operative Banks Act, 2007, that may provide, participate in or undertake only the following –

(A)    in the case of a primary savings co-operative bank, banking services contemplated in section 14(1)(a) to (d) of that Act; and

(B)     in the case of a primary savings and loans co-operative bank, banking services contemplated in section 14(2)(a) or (b) of that Act;

(gg)   a venture capital company as defined in section 12J;

(hh)   any company, close corporation or co-operative if the company, close corporation or co-operative –

(A)     has not during any year of assessment carried on any trade; and

(B)     has not during any year of assessment owned assets, the total market value of which exceeds R5 000; or

(ii)     any company, co-operative or close corporation if the company, co-operative or close corporation has taken the steps contemplated in section 41(4) to liquidate, wind up or deregister: Provided that this item ceases to apply if the company, co-operative or close corporation has at any stage withdrawn any step so taken or does anything to invalidate any step so taken, with the result that the company, co-operative or close corporation will not be liquidated, wound up or deregistered;

(iii)    not more than 20 per cent of the total of all receipts and accruals (other than those of a capital nature) and all the capital gains of the company, close corporation or co-operative consists collectively of investment income and income from the rendering of a personal service; and

(iv)    such company is not a personal service provider as defined in the Fourth Schedule;