“equity instrument” means any right or interest the value of which is determined directly or indirectly with reference to-
(a) a share; or
(b) an amount derived from a share;
[Definition of “equity instrument” inserted by section 14 of Act 15 of 2016 effective on 1 January 2017, applies in respect of years of assessment ending on or after that date]
‘equity instrument’ means a right or interest the value of which is determined directly or indirectly with reference to-
(a) a preference share; or
(b) an amount derived from a preference share;
[Definition of ‘equity instrument’ inserted by section 15 of Act 15 of 2016 effective on 1 January 2017, applies in respect of years of assessment ending on or after that date]
(1) For the purposes of this section—
‘enforcement right’ in relation to an instrument means any right, whether fixed or contingent, to require any person other than the issuer of that instrument to-
(a) acquire that instrument from the holder thereof;
(b) make any payment in respect of that instrument in terms of a guarantee, indemnity or similar arrangement; or
(c) procure, facilitate or assist with any acquisition contemplated in paragraph (a) or the making of any payment contemplated in paragraph (b);
[Definition of ‘enforcement right’ inserted by section 16 of Act 15 of 2016 effective on 1 January 2017, applies in respect of years of assessment commencing on or after that date]
‘third-party backed instrument’ means any instrument in respect of which an enforcement right is exercisable as a result of any amount relating to that instrument not being received by or accruing to any person entitled thereto.
[Definition of ‘third-party backed instrument’ added by section 16 of Act 15 of 2016 effective on 1 January 2017, applies in respect of years of assessment commencing on or after that date]
“underpin component” means a benefit receivable from a pension fund or provident fund the value of which benefit, in terms of the rules of the fund, is the greater of the amount of a defined contribution component or a defined benefit component other than a risk benefit.
[Definition of “underpin component” substituted by section 33(f) of Act 42 of 2024]
“concession or compromise” means any arrangement in terms of which-
(a) a debt is-
(i) cancelled or waived; or
(ii) extinguished by-
(aa) redemption of the claim in respect of that debt by the person owing that debt or by any person that is a connected person in relation to that person; or
(bb) merger by reason of the acquisition by the person owing that debt of the claim in respect of that debt,
otherwise than as the result or by reason of the implementation of an arrangement described in paragraph (b);
(b) a debt owed by a company is settled, directly or indirectly-
(i) by being converted to or exchanged for shares in that company; or
(ii) by applying the proceeds from shares issued by that company;
[Definition of “concession or compromise” substituted by section 36 of Act 23 of 2018 effective on 1 January 2018, applies in respect of years of assessment commencing on or after that date]
“group of companies” means a group of companies as defined in section 41; and
[Definition of “group of companies” amended by section 17(1)(a) of Act 20 of 2021]
‘exempt dividend’ means any dividend or foreign dividend to the extent that the dividend or foreign dividend is-
(a) not subject to tax under Part VIII of Chapter II; and
(b) exempt from normal tax in terms of section 10(1)(k)(i) or section 10B(2)(a) or (b);
‘extraordinary dividend’ means, in relation to-
(a) a preference share, so much of the amount of any dividend received or accrued in respect of that share as exceeds the amount that would have accrued in respect of that share had that amount been determined with reference to the consideration for which that share was issued by applying an interest rate of 15 per cent per annum for the period in respect of which that dividend was received or accrued;
[Paragraph (a) substituted by section 38 of Act 23 of 2018 effective on 19 July 2017, applies in respect of disposals on or after that date]
(b) any other share, so much of the amount of any dividend received or accrued:
(i) within a period of 18 months prior to the disposal of that share; or
(ii) in respect, by reason or in consequence of that disposal,
as exceeds 15 per cent of the higher of the market value of that share as at the beginning of the period of 18 months and as at the date of disposal of that share:
Provided that a dividend in specie that was distributed in terms of a deferral transaction must not be taken into account to the extent to which that distribution was made in terms of an unbundling transaction as defined in section 46(1)(a) or a liquidation distribution as defined in section 47(1)(a);
[Definition of “extraordinary dividend” amended by section 25(1)(a) of Act 34 of 2019 deemed effective on 30 October, 2019 and applicable in respect of dividends received or accrued on or after that date]
‘qualifying interest’ means an interest held by a company in another company, whether alone or together with any connected persons in relation to that company, that constitutes-
(a) if that other company is not a listed company, at least-
(i) 50 per cent of the equity shares or voting rights in that other company; or
(ii) 20 per cent of the equity shares or voting rights in that other company if no other person (whether alone or together with any connected person in relation to that person) holds the majority of the equity shares or voting rights in that other company; or
(b) if that other company is a listed company, at least 10 per cent of the equity shares or voting rights in that other company.