Category: Paragraph 2 (Second Schedule) – Amount to be included in gross income

Paragraph 2

 

  1. Words preceding item (1)(a) substituted by section 92(1)(a) of Act 22 of 2012 effective on 1 January 2012 and section 92(1)(b) of Act 22 of 2012 effective on 1 March 2012.

 

  1. Subitem (1)(a)(i) amended by section 80 of Act 7 of 2010 effective on 1 March 2011.

 

  1. Words preceding subsubitem (1)(a)( ii)(AA) substituted by section 80 of Act 7 of 2010 effective on 1 March 2011.

 

  1. Subsubitem (1)(a)(ii)(AA) substituted by section 80 of Act 7 of 2010 effective on 1 March 2011.

 

  1. Proviso to subitem (1)(a)(ii) substituted by section 80 of Act 7 of 2010 effective on 1 January 2011 and again substituted by section 80 of Act 7 of 2010 effective on 1 March 2011.

 

  1. Subitem (1)(a)(iii) added by section 80 of Act 7 of 2010 effective on 1 March 2011.

 

  1. Words following subitem (1)(a)(iii) substituted by section 80 of Act 7 of 2010 effective on 1 March 2009.

 

  1. Subitem (1)(b)(iA) substituted by section 80 of Act 7 of 2010 effective on 1 March 2009 and section 92 of Act 22 of 2012 effective on 1 March 2012.

 

  1. Item (2)(a) substituted by section 92 of Act 22 of 2012 effective on 1 March 2012.

 

  1. Paragraph 2 substituted by section 2 of Act 28 of 1997, section 48 of Act 30 of 1998, section 47 of Act 8 of 2007 and section 62 of Act 35 of 2007, amended by section 37 of Act 3 of 2008 and section 59 of Act 60 of 2008 and substituted by section 57 of Act 17 of 2009.

Paragraph 2 (Second Schedule) – Amount to be included in gross income

Posted on by admin_kmos

2.

 

(1)     Subject to section 9(2)(i) and paragraphs 2A, 2C and 2D, the amount to be included in the gross income of any person for any year of assessment in terms of paragraph (e) of the definition of “gross income” in section 1 shall be—

 

(a)     any amount received by or accrued to that person by way of a lump sum benefit derived in consequence of or following upon-

 

(i)      his or her retirement or death;

 

(ii)     the termination or loss of his or her employment due to-

 

(AA)  his or her employer having ceased to carry on or intending to cease carrying on the trade in respect of which he or she was employed or appointed; or

 

(BB)  that person having become redundant in consequence of his or her employer having effected a general reduction in personnel or a reduction in personnel of a particular class:

 

Provided that this subitem does not apply to any amount received by or accrued to a person by way of a lump sum where that person’s employer is a company and that person at any time held more than five per cent of the equity shares or members’ interest in that company; or

 

(iii)     the commutation of an annuity or portion of an annuity,

 

less any deduction permitted under the provisions of paragraph 5 or 6;

[Words following subitem (iii) substituted by section 80 of Act 7 of 2010 and amended by section 62 of Act 17 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

 

(b)     any amount –

 

(iA)   assigned in terms of a divorce order granted on or after 13 September 2007 under section 7(8)(a) of the Divorce Act, 1979 (Act No. 70 of 1979), to the extent that the amount so assigned-

 

(aa)   constitutes a part of a pension interest, as defined in section 1 of the Divorce Act, 1979 (Act No. 70 of 1979), of a member of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; and

 

(bb)   is due and payable on or after 1 March 2012 to a person who is the former spouse of that member by that pension fund, pension preservation fund, provident fund or provident preservation fund or retirement annuity fund;

 

(iB)    that is transferred for the benefit of that person to any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund from any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund of which that person is or previously was a member; and

 

(ii)     other than an amount contemplated in item (a) or subitem (iA) or (iB), received by or accrued to that person by way of a lump sum benefit from or in consequence of membership or past membership of any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund,

 

less any deduction permitted under paragraph 6; and

[Words following subitem (ii) amended by section 62 of Act 17 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

 

(c)     any amount transferred for the benefit of that person on or after normal retirement age, as defined in the rules of the fund, but before retirement date, less any deductions permitted under the provisions of paragraph 6A.

[Item (c) inserted by section 62 of Act 17 of 2017 effective on 1 March 2018, applies in respect of years of assessment commencing on or after that date]

[Sub­paragraph (1) amended by section 92(1)(a) and (b) of Act 22 of 2012 and by section 48 of Act 34 of 2019]

 

(2)     An amount contemplated in subparagraph (1)(b) shall be deemed to accrue to a person –

 

(a)     in the case of an amount contemplated in subparagraph (1)(b)(iA), on the date on which the amount is due and payable as contemplated in subparagraph (1)(b)(iA)(bb); and

 

(b)     in the case of an amount contemplated in subparagraph (1)(b)(iB), on the date of its transfer.