“commencement”, in relation to an annuity contract, means the date on which the annuity contract is concluded;
“Annuity contract” definition of section 10A of ITA
“annuity contract” means an agreement concluded between an insurer in the course of his insurance business and a purchaser, in terms of which –
(a) the insurer agrees to pay to the purchaser or the purchaser’s spouse or surviving spouse an annuity or annuities (whether to one such person or to each of them) until the death of the annuitant or the expiry of a specified term;
(b) the purchaser agrees to pay to the insurer a lump sum cash consideration for such annuity or annuities; and
(c) no amounts are or will be payable by the insurer to the purchaser or any other person other than amounts payable by way of such annuity or annuities or, where an annuity is payable for a minimum term and such annuity is in the event of the death of the annuitant before the end of such term to continue to be payable to some third person for the balance of that term, amounts which may be so payable to such third person by way of such annuity,
but does not include any agreement for the payment by any insurer of any annuity which is under the rules of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund payable to a member of such fund or to any other person;
“Annuity amount” definition of section 10A of ITA
(1) For the purposes of this section –
“annuity amount” means an amount payable by way of annuity under an annuity contract and any amount payable in consequence of the commutation or termination of any such annuity contract;
Section 10A (ITA) – Exemption of capital element of purchased annuities
10A. Exemption of capital element of purchased annuities
Subsections 2 and 3 of section 10 of ITA
(2) Notwithstanding the exemptions provided for in paragraphs (h) and (k) of subsection (1)-
(a) ……….
(b) the said exemptions shall not apply in respect of any portion of an annuity.
(3) The exemptions from tax provided by any paragraph of subsection (1) shall not extend to-
(a) any payments out of the receipts, accruals, amounts or profits mentioned in such paragraph; or
(b) any tax leviable under this Act in respect of any taxable capital gain determined in accordance with the Eighth Schedule.
(4) . . . . . .
(5)
(a) A person is disqualified from managing the collective interests common to all its members as mentioned in subsection (1)(e)(i)(cc)(A) if that person is disqualified in terms of section 6 of the Trust Property Control Act, 1988 (Act 57 of 1988), section 25A of the Nonprofit Organisations Act, 1997 (Act 71 of 1997), or section 69 of the Companies Act.
(b) A person who manages the collective interests common to all its members, as mentioned in subsection (1)(e)(i)(cc)(A) in contravention of paragraph (a), shall be guilty of an offence and liable, on conviction, to a fine or to imprisonment for a period not exceeding 24 months.
[Subsection (5) added by section 3 of Act 18 of 2023]
Section 10(1)(zJ) of ITA
(zJ) any amount received by or accrued to or in favour of a registered micro business as defined in the Sixth Schedule, from the carrying on of a business in the Republic, other than an amount received by or accrued to a natural person registered as a micro business that constitutes-
(i) investment income as defined in paragraph 1 of the Sixth Schedule; or
(ii) remuneration as defined in the Fourth Schedule.
Section 10(1)(zL) of ITA
(zL) any amount received or accrued previously prohibited as a deduction during any year of assessment under section 23(o)(iii) that is recovered in any subsequent year of assessment.
[Paragraph (zL) added by section 22 of Act 23 of 2018 effective on 1 April 2019 and applies in respect of years of assessment commencing on or after that date]
Section 10(1)(zE) of ITA
(zE) any amount received by or accrued to the Small Business Development Corporation Limited, by way of any subsidy or assistance payable by the State;
Section 10(1)(yA) of ITA
(yA) any amount received by or accrued to any person in respect of goods or services provided to beneficiaries in terms of an official development assistance agreement that is binding in terms of section 231(3) of the Constitution of the Republic of South Africa, 1996, to the extent –
(aa) that amount is received or accrued in relation to projects that are approved by the Minister; and
[Subparagraph (aa) substituted by section 16 of Act 17 of 2017 and section 22 of Act 23 of 2018 effective on 17 January 2019]
(bb) where that agreement was concluded on or after 1 January 2007, that that agreement provides that those receipts and accruals of that person must be exempt;
[Subparagraph (bb) substituted by section 22(1)(d) of Act 23 of 2018 and by section 10(1)(e) of Act 23 of 2020 deemed to have come into operation 1 January, 2007 and applicable in respect of years of assessment commencing on or after that date]
(cc) ……….
[Subparagraph (cc) deleted by section 16 of Act 17 of 2017 effective on 18 December 2017]
Section 10(1)(u) of ITA
(u) any amount received by or accrued to any person-
(i) from or on behalf of such person’s spouse or former spouse by way of alimony or allowance or maintenance of such person under an order of judicial separation or divorce granted in consequence of proceedings instituted after the twenty-first day of March, 1962, or under any agreement of separation entered into after that date.
(iA) any amount referred to in subparagraph (ii) of paragraph (b) of the definition of “gross income”, other than any amount deemed to accrue to that person in terms of section 7(11); or
[Subparagraph (iA) inserted by section 11(1)(b) of Act 5 of 2026 effective on 1 March, 2026 and applicable in respect of years of assessment commencing on or after that date]