“exchange item” of or in relation to a person means an amount in a foreign currency-

 

(a)     which constitutes any unit of currency acquired and not disposed of by that person;

 

(b)     owing by or to that person in respect of a debt incurred by or payable to such person;

 

(c)     owed by or to that person in respect of a forward exchange contract;

[Paragraph (c) substituted by section 20(1)(a) of Act 42 of 2024 effective on 1 January, 2025 and applicable in respect of years of assessment commencing on or after that date]

 

(d)     where that person has the right or contingent obligation to buy or sell that amount in terms of a foreign currency option contract; or

[Paragraph (d) substituted by section 20(1)(a) of Act 42 of 2024 effective on 1 January, 2025 and applicable in respect of years of assessment commencing on or after that date]

 

(e)     that constitutes a preference share as defined in section 8EA(1), in a foreign company;

[Paragraph (e) added by section 20(1)(b) of Act 42 of 2024 effective on 1 January, 2025 and applicable in respect of years of assessment commencing on or after that date]

[Definition of “exchange item” amended by section 18(1)(b) of Act 21 of 1994 and substituted by section 36(1)(a) of Act 60 of 2001 deemed to have come into operation on 1 October, 2001]