“Temporarily applied” definition of section 18D of VAT Act
(b) “temporarily applied” means the application of fixed property or a portion of a fixed property in supplying accommodation in a dwelling under an agreement or more than one agreement for letting and hiring thereof which agreement or agreements relate to a combined total period not exceeding 12 months: Provided that “temporarily applied” does not include the application of fixed property in supplying accommodation in a dwelling under an agreement for the letting and hiring thereof where any such agreement is for a fixed period exceeding 12 months, in which case this section will not apply, but the provisions of section 18(1) shall apply.
(2) Notwithstanding the provisions of section 18(1), where goods being supplied consist of fixed property consisting of any dwelling and such fixed property—
(a) is developed by a vendor who is a developer wholly for the purpose of making taxable supplies or is held or applied for that purpose by that vendor; and
(b) is subsequently temporarily applied by that vendor in accordance with section 12(c),
such fixed property shall be deemed to have been supplied by that vendor by way of a taxable supply for the consideration contemplated in section 10(29) and shall take place in accordance with section 9(13).
(3) Where a vendor who is a developer subsequently supplies fixed property contemplated in subsection (2)(b) by way of a sale within the period that the fixed property is temporarily applied, such supply shall be a taxable supply in the course or furtherance of the vendor’s enterprise and shall take place in accordance with section 9(3)(d).
(4) Where fixed property contemplated in subsection (3) is supplied by that vendor, the supply shall be deemed to be made for a consideration as contemplated in section 10(2).
(5) Where fixed property-
(a) contemplated in subsection (3) is supplied by that vendor within the “temporarily applied” period; or
[Paragraph (a) substituted by section 50(1)(a) of Act 17 of 2023 effective on 1 April, 2024]
(b) is temporarily applied as contemplated in subsection (2)(b) and is no longer applied in supplying accommodation in a dwelling immediately after the expiry of the “temporarily applied” period;
[Paragraph (b) substituted by section 50(1)(b) of Act 17 of 2023 effective on 1 April, 2024]
(c) . . . . . .
[Paragraph (c) substituted by section 30(1) of Act 20 of 2022 and deleted by section 50(1)(c) of Act 17 of 2023 effective on 1 April, 2024]
the Commissioner shall allow such vendor a deduction in terms of section 16(3)(o), and the deduction so made shall be deemed for the purpose of that section to be input tax.
(6) The fixed property contemplated in subsection (2)(b) shall be deemed to have been supplied by the developer by way of a taxable supply under section 18(1) for a consideration as contemplated in section 10(7) in the course or furtherance of that vendor’s enterprise at the earlier of-
(a) the time that the temporary letting period of 12 months has been exceeded; or
(b) the time that the vendor applies that fixed property permanently for a purpose other than that of making taxable supplies:
Provided that this provision shall not apply if, during the period that the property is “temporarily applied”, a written agreement for the taxable supply of the property has been concluded and the transfer of that property only occurs after the expiry of the said period. In such a case, the sale of the property concerned will be a taxable supply at the time contemplated in section 9(3)(d).
[Subsection (6) added by section 50(1)(d) of Act 17 of 2023 effective on 1 April, 2024]
[Section 18D inserted by section 54(1) of Act 20 of 2021 effective on 1 April, 2022]
“Developer” definition of section 18D of VAT Act
(1) For the purposes of this section-
(a) “developer” means a vendor who continuously or regularly constructs, extends or substantially improves fixed property consisting of any dwelling or continuously or regularly constructs, extends or substantially improves parts of that fixed property for the purpose of disposing of that fixed property after the construction, extension or improvement; and
Section 18D (VAT) – Temporary letting of residential property
18D. Temporary letting of residential property
BGR60 (ITA) – Disqualification as a qualifying company under section12R(4)(b)
“Risk benefit policy” definition of paragraph 12D of Seventh Schedule
“risk benefit policy” means a policy under which the risk benefit provided by the fund directly or indirectly for the benefit of a member of the fund is provided by means other than a policy of insurance;
[Definition of “risk benefit policy” inserted by section 43(1)(b) of Act 20 of 2021 effective on 1 March, 2022 and applicable in respect of years of assessment commencing on or after that date]
Section 57B (ITA) – Disposal of the right to receive an asset which would otherwise have been acquired in consequence of services rendered or to be rendered
57B. Disposal of the right to receive an asset which would otherwise have been acquired in consequence of services rendered or to be rendered
(1) This section applies where-
(a) a person (“the employee”) has agreed to render services to another person (“the employer”);
(b) the whole or part of the compensation for those services is to be paid by the employer in the form of an asset as defined in paragraph 1 of the Eighth Schedule; and
(c) prior to the employee becoming entitled to that asset, that employee disposes of the right to the asset to another person.
(2) For purposes of this Act, where subsection (1) applies—
(a) that disposal must be disregarded and that employee must be treated as having acquired that asset on the date that it would otherwise have been received by or accrued to him or her for an amount of expenditure equal to the amount included in that employee’s gross income under paragraph (ii) of the proviso to paragraph (c) or under paragraph (i) of the definition of “gross income”; and
(b) that employee must be treated as having disposed of that asset to that other person by way of donation for an amount received or accrued equal to the expenditure contemplated in subsection (2)(a), and that other person must be deemed to have acquired that asset for expenditure equal to that same amount.
[Section 57B inserted by section 32(1) of Act 20 of 2021 effective on 1 March, 2022 and applicable in respect of the disposal of the right to receive an asset on or after that date]
“Liquidation and distribution account” definition of section 1 of ITA
“liquidation and distribution account” means the account required to be submitted by an executor to a Master in accordance with section 35 of the Administration of Estates Act, 1965 (Act 66 of 1965);
[Definition of “liquidation and distribution account” inserted by section 4(1)(e) of Act 20 of 2021 effective on 1 March, 2022 and applicable in respect of liquidation and distribution accounts finalised on or after that date]