Category: Definitions – ITA

“Identical security” definition of section 1 of ITA

Posted on by admin_kmos

“identical security” means in respect of a listed security, as defined in the Securities Transfer Tax Act, 2007 (Act No. 25 of 2007), that is the subject of a securities lending arrangement-

(a)     a security of the same class in the same company as that security; or

(b)     any other security that is substituted for that listed security in terms of an arrangement that is announced and released as a corporate action as contemplated in the JSE Limited Listings Requirements in the SENS (Stock Exchange News Service) as defined in the JSE Limited Listings Requirements;

[Definition of “identical security” inserted by section 3(1)(h) of Act 25 of 2015 effective on 1 January, 2016. Paragraph (b) substituted by section 5(1)(e) of Act 15 of 2016 and by section 1(1)(d) of Act 20 of 2022]

“Identical share” definition of section 1 of ITA

Posted on by admin_kmos

“identical share” means in respect of a share-

(a)     a share of the same class in the same company as that share; or

(b)     any other share that is substituted for a listed share in terms of an arrangement that is announced and released as a corporate action as contemplated in the JSE Limited Listings Requirements in the SENS (Stock Exchange News Service) as defined in the JSE Limited Listings Requirements or a corporate action as contemplated in the listings requirements of any other exchange, licensed under the Financial Markets Act, that are substantially the same as the requirements prescribed by the JSE Limited Listings Requirements, where that corporate action complies with the applicable requirements of that exchange;

[Paragraph (b) substituted by section 5(1)(f) of Act 15 of 2016, by section 1(1)(f) of Act 23 of 2018 and by section 2(1)(d) of Act 34 of 2019]

[Definition of “identical share” inserted by section 3 of Act 25 of 2015 effective on 1 January 2016]

“Small, medium or micro-sized enterprise” definition of section 1 of ITA

Posted on by admin_kmos

“small, medium or micro-sized enterprise” means any-

(a)     person that qualifies as a micro business as defined in paragraph 1 of the Sixth Schedule; or

(b)     any person that is a small business corporation as defined in section 12E(4);

[Definition of “small, medium or micro-sized enterprise” inserted by section 1 of Act 43 of 2014 effecive on 1 March 2015]

“Compliance period” definition of section 12I of ITA

Posted on by admin_kmos

‘compliance period’ means the period-

(a)     commencing at the beginning of the year of assessment following the year of assessment in which assets are first brought into use; and

(b)     ending at the end of the year of assessment three years after the year of assessment in which assets are first brought into use;

[Definition of ‘compliance period’ inserted by section 22 of Act 25 of 2015 effective on 8 January 2009]

“Qualifying company” definition of section 12R of ITA

Posted on by admin_kmos

‘qualifying company’ means a company-

(a)

(i)      incorporated by or under any law in force in the Republic or in any part thereof; or

(ii)     that has its place of effective management in the Republic;

(b)     that carries on a trade in a special economic zone designated by the Minister of Trade and Industry in terms of the Special Economic Zones Act and approved by the Minister of Finance after consultation with the Minister of Trade and Industry for the purposes of this section by notice in the Gazette;

[Paragraph (b) substituted by section 26 of Act 43 of 2014 effective on the date on which the Special Economic Zones Act comes into operation, 9 February 2016 and by section 30 of Act 17 of 2017 effective on 9 February 2016]

(c)     if the trade contemplated in paragraph (b) is carried on from a fixed place of business situated within a special economic zone;

[Paragraph (c) substituted by section 30(1)(a) of Act 17 of 2017 and amended by section 20(1) of Act 34 of 2019 deemed effective on 1 January, 2019 and applicable in respect of years of assessment ending on or after that date]

(d)     if not less than 90 per cent of the income of that company is derived from the carrying on of a trade within one or more special economic zones; and

[Paragraph (d) substituted by section 26(1)(c) of Act 43 of 2014 and by section 30(1)(a) of Act 17 of 2017 and amended by section 20(1) of Act 34 of 2019 deemed effective on 1 January, 2019 and applicable in respect of years of assessment ending on or after that date]

(e)      that—

(i)      was carrying on any trade before 1 January 2013 in a location that is subsequently approved for the purpose of this section as a zone in terms of subsection (3);

(ii)     commenced, on or after 1 January 2013 the carrying on, in a location that is approved or subsequently approved for the purpose of this section as a zone in terms of subsection (3), of any trade not previously carried on by that company or any connected person in relation to that company in the Republic; or

(iii)    commenced, on or after 1 January 2013 the carrying on, in a location that is approved or subsequently approved for the purpose of this section as a zone in terms of subsection (3), of any trade and that trade-

(aa)   comprises of the production of goods not previously produced by that company or any connected person in relation to that company in the Republic;

(bb)   utilises the use of new technology in that company’s production processes; or

(cc)   represents an increase in the production capacity of that company in the Republic.

[Paragraph (e) added by section 20(1) of Act 34 of 2019 deemed effective on 1 January, 2019 and applicable in respect of years of assessment ending on or after that date]