Category: Income Tax Act No. 58 of 1962

Paragraph 2 (Ninth Schedule – Part I) – Health care

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2.    Health Care

 

(a)     The provision of health care services to poor and needy persons.

 

(b)     The care or counseling of terminally ill persons or persons with a severe physical or mental disability, and the counseling of their families in this regard.

 

(c)     The prevention of HIV infection, the provision of preventative and education programmes relating to HIV/AIDS.

 

(d)     The care, counseling or treatment of persons afflicted with HIV/AIDS, including the care or counseling of their families and dependants in this regard.

 

(e)     The provision of blood transfusion, organ donor or similar services.

 

(f)      The provision of primary health care education, sex education or family planning.

Paragraph 2 (Ninth Schedule – Part II) – Health care

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2.    Health Care

 

(a)     The provision of health care services to poor and needy persons.

 

(b)     The care or counseling of terminally ill persons or persons with a severe physical or mental disability, and the counseling of their families in this regard.

 

(c)     The prevention of HIV infection, the provision of preventative and education programmes relating to HIV/AIDS.

 

(d)     The care, counseling or treatment of persons afflicted with HIV/AIDS, including the care or counseling of their families and dependants in this regard.

 

(e)     The provision of blood transfusion, organ donor or similar services.

 

(f)      The provision of primary health care education, sex education or family planning.

Paragraph 2C (Second Schedule) – Lump sum benefit received or accrued subsequent to retirement, death, withdrawal or resignation

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2C.    Any lump sum benefit, or part thereof, received by or accrued to a person subsequent to the person’s retirement or death, or withdrawal or resignation from any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund or the winding up of any such fund, and in consequence of or following upon an event that is prescribed by the Minister by notice in the Gazette and contemplated by the rules of any such fund or the approval of a scheme in terms of section 15B of the Pension Funds Act or paragraph 5.3(1)(b) of the Schedule which amends regulation 30 of the Regulations under the Long-term Insurance Act shall not constitute gross income of that person.

Paragraph 3 (Ninth Schedule) – Land and housing

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3.    Land and Housing

 

(a)     The development, construction, upgrading, conversion or procurement of housing units for the benefit of persons whose monthly household income is equal to or less than R15 000 or any greater amount determined by the Minister of Finance by notice in the Gazette after consultation with the Minister of Housing.

 

(b)     The development, servicing, upgrading or procurement of stands, or the provision of building materials, for purposes of the activities contemplated in subparagraph (a).

 

(c)     The provision of residential care for retired persons, where –

 

(i)      more than 90 per cent of the persons to whom the residential care is provided are over the age of 60 and nursing services are provided by the organisation carrying on such activity; and

 

(ii)     residential care for retired persons who are poor and needy is actively provided by that organisation without full recovery of cost.

 

(d)     Building and equipping of-

 

(i)      clinics or creches; or

 

(ii)     community centres, sport facilities or other facilities of a similar nature, for the benefit of the poor and needy.

 

(e)     The promotion, facilitation and support of access to land and use of land, housing and infrastructural development for promoting official land reform programmes.

 

(f)      Granting of loans for purposes of subparagraph (a) or (b), and the provision of security or guarantees in respect of such loans, subject to such conditions as may be prescribed by the Minister by way of regulation.

 

(g)     The protection, enforcement or improvement of the rights of poor and needy tenants, labour tenants or occupiers, to use or occupy land or housing.

 

(h)     The provision of training, support or assistance to emerging farmers in order to improve capacity to start and manage agricultural operations.

Paragraph 3 (Tenth Schedule) – Withholding taxes

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3.    Withholding taxes

 

(1)     The rate of dividends tax contemplated in section 64E that is paid by an oil and gas company on the amount of any dividend derived from oil and gas income must not exceed zero per cent of the amount of that dividend.

 

(2)     Notwithstanding subparagraph (1), the rate of dividends tax may not exceed 0 per cent of the amount of any dividend, as defined in section 64D, that is paid by any oil and gas company out of amounts attributable to its oil and gas income if all of its oil and gas rights are solely derived (directly or indirectly) by virtue of an OP26 right as defined in Schedule II of the Mineral and Petroleum Resources Development Act, 2002 (Act No. 28 of 2002), previously held by that company.

Paragraph 37 (Eighth Schedule) – Assets of trust and company

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37.     Assets of trust and company

 

(1)     Where-

 

(a)     an asset contemplated in paragraph 15 which is not used for purposes of carrying on a trade or an asset which, if owned by a natural person, would be a personal-use asset as contemplated in paragraph 53, is owned by a trust or a company any interest in which or any shares of which are held directly or indirectly by a natural person;

 

(b)     there is a decrease in the market value of that asset while held by that trust or company after that person acquired an interest in that trust or company; and

 

(c)     any interest in that trust or that company is thereafter disposed of by a person, that person must be treated as having disposed of that interest for proceeds equal to the market value of that interest, determined on the date of disposal, as if the market value of that asset had not decreased.

 

(2)     Subparagraph (1) does not apply where more than 50 per cent of the assets of the trust or company consist of assets used wholly and exclusively for trading purposes.

Paragraph 37F (Eighth Schedule) – Determination of taxable income derived by persons previously assessable under certain other laws

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37F.     Determination of taxable income derived by persons previously assessable under certain other laws

 

Where it is necessary for any rule provided in this Act as to the inclusion in the income of any taxpayer for any year or as to the deduction or set–off of any amount from or against his income for such year, that regard shall be had to anything that has been done or has occurred in or in relation to a previous year of assessment, anything that has in fact been done or has in fact occurred in or in relation to a year of assessment during which the taxpayer was assessable for taxation purposes in terms of any law of a former self–governing territory declared under section 26 of the repealed Self–governing Territories Constitution Act, 1971 (Act No. 21 of 1971), to be a self–governing territory or of the former Republic of Transkei, Bophuthatswana, Venda or Ciskei for any year of assessment, shall, subject to such adjustments as may in the circumstances be appropriate, for the purposes of applying such rule be taken into account.

Paragraph 39A (Eighth Schedule) – Disposal of asset for unaccrued amounts of proceeds

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39A.    Disposal of asset for unaccrued amounts of proceeds

 

(1)     Where a person during any year of assessment disposes of an asset and all the proceeds from the disposal of that asset will not accrue to that person during that year, that person must, when determining the aggregate capital gain or aggregate capital loss for that year or any subsequent year of assessment, disregard any capital loss determined in respect of that disposal.

 

(2)     A person’s capital loss which is disregarded during any year of assessment in terms of subparagraph (1) which has not otherwise been allowed as a deduction may be deducted from that person’s capital gains determined in any subsequent year in respect of the disposal of the asset contemplated in subparagraph (1).

 

(3)     If during any year of assessment a person shows that no further proceeds will accrue to that person from the disposal contemplated in subparagraph (1), so much of the capital loss contemplated in that subparagraph as has not been deducted from any subsequent capital gains as contemplated in subparagraph (2), may be taken into account in determining that person’s aggregate capital gain or aggregate capital loss for that year of assessment.

Paragraph 4 (Ninth Schedule) – Conservation, environment and animal welfare

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4.    Conservation, Environment and Animal Welfare

 

(a)     Engaging in the conservation, rehabilitation or protection of the natural environment, including flora, fauna or the biosphere.

 

(b)     The care of animals, including the rehabilitation or prevention of the ill-treatment of animals.

 

(c)     The promotion of, and education and training programmes relating to, environmental awareness, greening, clean-up or sustainable development projects.

 

(d)     The establishment and management of a transfrontier area, involving two or more countries, which –

 

(i)      is or will fall under a unified or coordinated system of management without

 

(ii)     has been established with the explicit purpose of supporting the conservation of biological diversity, job creation, free movement of animals and tourists across the international boundaries of the peace park, and the building of peace and understanding between the nations concerned.

Paragraph 5 (Ninth Schedule) – Land and housing

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5.  Land and Housing

 

(a)     The development, construction, upgrading, conversion or procurement of housing units for the benefit of persons whose monthly household income is equal to or less than R15 000 or any greater amount determined by the Minister of Finance by notice in the Gazette after consultation with the Minister of Housing.

 

(b)     The development, servicing, upgrading or procurement of stands, or the provision of building materials, for purposes of the activities contemplated in subparagraph (a).

 

(c)     Building and equipping of clinics or creches for the benefit of the poor and needy.

 

(d)     The protection, enforcement or improvement of the rights of poor and needy tenants, labour tenants or occupiers, to use or occupy land or housing.

 

(e)     The promotion, facilitation and support of access to land and use of land, housing and infrastructural development for promoting official land reform programmes.