“rental income” means an amount calculated in accordance with the formula-

RI = PI + EG

in which formula-

(a)       “RI” represents the amount to be determined;

(b)       “PI” represents the aggregate of all amounts received or accrued-

(i)  in respect of the use of immovable property, including a penalty or interest in respect of late payment of any such amount;

(ii) as a dividend (other than a dividend contemplated in paragraph (b) of the definition of “dividend”) from a company that is a REIT at the time of the distribution of that dividend;

(iii)    as a qualifying distribution from a company that is a controlled company at the time of that distribution;

(iv)    as a dividend or foreign dividend from a company that is a property company at the time of that distribution; and

(v) any amount recovered or recouped in terms of section 8(4) in respect of an amount of an allowance previously deducted in terms of section 11(g), 13, 13bis, 13ter, 13quat, 13quin or 13sex; and

(c)      “EG” represents the total of foreign exchange gains contemplated in the definition of “exchange difference” in section 24I(1), determined in terms of that section in respect of the amounts referred to in paragraph (b) that constitute exchange items or any exchange item serving as a hedge in respect of amounts referred to in that paragraph.

[Definition of “rental income” amended by section 48(1)(a) of Act 15 of 2016 and substituted by section 32 of Act 34 of 2019]