Category: Definitions – ITA

“Vested component” definition of section 1 of ITA

Posted on by admin_kmos

“vested component” means a component established in terms of the rules of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for a person who is a member of that fund: Provided that the rules of the fund provide that-

(a)     the member’s interest in this component, after taking into account the allocation of the amount contemplated in paragraph (a) of the definition of “savings component”, is subject to and must be paid in accordance with the rules of the fund that exist immediately prior to 1 September 2024;

(b)     no contributions may be made to this component on or after 1 September 2024, except in the case of a person who was a member of a provident fund and is still a member of the same provident fund and who was 55 years of age or older on 1 March 2021: Provided that where the above-mentioned member has elected to make contributions to the savings component and the retirement component on or after 1 September 2024, that member may not be allowed to make contributions to this component from the month following the effective date of election;

(c)     the member may, in accordance with the rules of the fund that exist immediately prior to 1 September 2024, elect to transfer the value of this component into the member’s vested component of another pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund on termination of membership of the fund;

(d)     the member may elect to transfer the value of this component into the member’s retirement component of another pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund on termination of membership of the fund; and

(e)     the member may elect to transfer the value of this component into the member’s retirement component of the same pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund of which he or she is a member;

[Definition of “vested component” inserted by section 1(1)(zJ) of Act 12 of 2024 and substituted by section 1(1)(zH) of Act 44 of 2024 deemed to have come into operation on 1 September, 2024]

“FLAC instrument” definition of section 1 of ITA

Posted on by admin_kmos

“FLAC instrument” means an instrument contemplated in the Prudential Standard RA03 regulations issued in terms of section 105(2)(c), read with sections 30(1A) and 42(b)(vi) of the Financial Sector Regulation Act;

[Definition of “FLAC instrument” inserted by section 1(1)(b) of Act 5 of 2026 effective on 1 January 2026]

“Motor vehicle manufacturer” definition of section 12V of ITA

Posted on by admin_kmos

(5)     For the purpose of this section-


“motor vehicle manufacturer” means the manufacturer-


(a)     as determined by applying the criteria in paragraph (i) of the definition of “final manufacturer”, as defined in the regulations issued in terms of section 59 of the International Trade Administration Act, 2002 (Act 71 of 2002), contained in Government Notice No. R.80, as published in Government Gazette No. 44144 of 11 February 2021; or


(b)     of a “heavy motor vehicle”, as referred to in item 317.07 in Part I of Schedule No. 3 to the Customs and Excise Act, 1964 (Act 91 of 1964), to the extent of assembly provided for in Note 5 to Chapter 98 of Part 1 of Schedule No. 1 to that Act.

[Section 12V inserted by section 12(1) of Act 42 of 2024 effective on 1 March, 2026 and applicable in respect of assets brought into use on or after that date. Subsection (5) added by section 16(1) of Act 5 of 2026 effective on 1 March, 2026 and applicable in respect of assets brought into use on or after that date]