1. For the purposes of this Schedule –
Category: Paragraph 1 (Second Schedule) – Definitions
Paragraph 1
- Definition of “formula A” amended by section 34 of Act 88 of 1971, section 34 of Act 69 of 1975, section 26 of Act 113 of 1977, section 17 of Act 104 of 1979, section 27 of Act 104 of 1980, section 28 of Act 96 of 1981, section 46 of Act 94 of 1983 and section 24 of Act 65 of 1986 and deleted by section 46 of Act 8 of 2007 effective on 1 October 2007.
- Definition of “formula B” amended by section 31 of Act 90 of 1962, section 23 of Act 90 of 1964, section 34 of Act 88 of 1971, section 34 of Act 69 of 1975, section 26 of Act 113 of 1977, section 17 of Act 104 of 1979, section 27 of Act 104 of 1980, section 46 of Act 94 of 1983, section 24 of Act 65 of 1986, section 43 of Act 101 of 1990 and section 36 of Act 3 of 2008 and deleted by section 56 of Act 17 of 2009.
- Definition of “formula C” inserted by section 41 of Act 28 of 1997, amended by section 47 of Act 30 of 1998, section 82 of Act 45 of 2003, section 43 of Act 32 of 2004 and section 56 of Act 17 of 2009 and deleted by section 91 of Act 22 of 2012 effective on 1 March 2012.
- Definition of “lump sum benefit” substituted by section 47 of Act 30 of 1998, section 36 of Act 3 of 2008, section 58 of Act 60 of 2008 and section 79 of Act 7 of 2010 effective on 1 March 2011 and section 91 of Act 22 of 2012 effective on 1 March 2012.
- Definition of “pension fund” amended by section 31 of Act 90 of 1962 and substituted by section 46 of Act 94 of 1983, section 41 of Act 28 of 1997 and section 91 of Act 22 of 2012 effective on 1 March 2012.
- Definition of “provident fund” substituted by section 41 of Act 28 of 1997 and section 91 of Act 22 of 2012 effective on 1 March 2012.
- Definition of “public sector fund” inserted by section 91 of Act 22 of 2012 effective on 1 March 2012.
- Definition of “retire” amended by section 23 of Act 90 of 1964 and section 35 of Act 21 of 1995 and substituted by section 36 of Act 3 of 2008 and section 91 of Act 22 of 2012 effective on 1 March 2012.
- Definition of “retirement annuity fund” substituted by section 91 of Act 22 of 2012 effective on 1 March 2012.
“Lump sum benefit” definition of Second Schedule
“lump sum benefit” includes-
(a) any amount determined in respect of the commutation of an annuity or portion of an annuity-
(i) payable by; or
(ii) provided in consequence of membership or past membership of,
a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; and
(b) any fixed or ascertainable amount (other than an annuity) –
(i) payable by; or
(ii) provided in consequence of membership or past membership of,
a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund, whether in one amount or in instalments, but does not include any amount deemed to be income accrued to a person in terms of section 7(11);
“Pension fund” definition of Second Schedule
“pension fund”, in relation to any person, means –
(a) a fund which has in respect of the year of assessment in question or any previous year of assessment been approved by the Commissioner as a pension fund under paragraph (c) of the definition of “pension fund” in section 1 or a corresponding definition in any previous Income Tax Act; or
(b) a public sector fund (other than a fund referred to in paragraph (b) of the definition of “provident fund”), the rules of which wholly or mainly provide for annuities on retirement to its members,
if during any such year the person was a member of such fund;
“Provident fund” definition of Second Schedule
“provident fund”, in relation to any person, means –
(a) a fund which has in respect of the year of assessment in question or any previous year of assessment been approved by the Commissioner as a provident fund as defined in section 1 of this Act or the corresponding provisions of any previous Income Tax Act; or
(b) a public sector fund, the rules of which provide for benefits in a lump sum exceeding one–third of the capitalised value of all benefits (including lump sum payments and annuities) to its members on retirement,
if during any such year the person was a member of such fund;
“Public sector fund” definition of Second Schedule
“public sector fund” means a fund referred to in paragraph (a), (b) or (d) of the definition of “pension fund” or paragraph (a), (b) or (c) of the definition of “provident fund” in section 1(1);
[Definition of “public sector fund” inserted by section 91(1)(e) of Act 22 of 2012 and substituted by section 62(1) of Act 15 of 2016 and by section 38(1) of Act 23 of 2020 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date]
“Retire” definition of Second Schedule
“retire”, in relation to a person who is a member of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund, means to become entitled to the annuity or lump sum benefit contemplated in the definition of “retirement date”;
“Retirement annuity fund” definition of Second Schedule
“retirement annuity fund” in relation to any taxpayer, means a fund which has in respect of the year of assessment in question or any previous year of assessment been approved by the Commissioner as a retirement annuity fund as defined in section 1 of this Act or the corresponding provisions of any previous Income Tax Act, if during any such year the person was a member of such fund.