“Employer” definition of Fourth Schedule

“employer” means any person (excluding any person not acting as a principal, but including any person acting in a fiduciary capacity or in his capacity as a trustee in an insolvent estate, an executor or an administrator of a benefit fund, pension fund, pension preservation fund, provident fund, provident preservation fund, retirement annuity fund or any other fund) who pays or is liable to pay to any person any amount by way of remuneration, and any person responsible for the payment of any amount by way of remuneration to any person under the provisions of any law or out of public funds (including the funds of any provincial council or any administration or undertaking of the State) or out of funds voted by Parliament or a provincial council;

“Employee” definition of Fourth Schedule

For the purposes of this Schedule, unless the context otherwise indicates –

“employee” means –

(a)     any person (other than a company) who receives any remuneration or to whom any remuneration accrues;

(b)     any person who receives any remuneration or to whom any remuneration accrues by reason of any services rendered by such person to or on behalf of a labour broker;

(c)     any labour broker;

[Paragraph (c) amended by section 6 of Act 23 of 2015 effective on 8 January 2016] 

(d)     any person or class or category of person whom the Minister of Finance by notice in the Gazette declares to be an employee for the purposes of this definition;

[Paragraph (d) amended by section 66 of Act 60 of 2008 effective on1 March 2009 and section 6 of Act 23 of 2015 effective on 8 January 2016]

(e)     any personal service provider; or

[Paragraph (e) added by section 52 of Act 30 of 2000, substituted by section 66 of Act 60 of 2008 effective on 1 March 2009 and amended by section 6 of Act 23 of 2015 effective on 8 January 2016]

(f)      ………..

(g)     ……….

[Paragraph (g) added by section 19 of Act 19 of 2001 and deleted by section 4 of Act 22 of 2018 effective on 1 March 2019, applies to years of assessment commencing on or after that date]

Fourth Schedule – Amounts to be deducted or withheld by employers and provisional payments in respect of normal tax

FOURTH SCHEDULE

 

AMOUNTS TO BE DEDUCTED OR WITHHELD BY EMPLOYERS AND PROVISIONAL PAYMENTS IN RESPECT OF NORMAL TAX

(Section 5 of this Act)

[Heading of the Fourth Schedule substituted by section 5 of Act 23 of 2015 effective on 8 January 2016]

Third Schedule – Laws Repealed

THIRD SCHEDULE


Laws Repealed

 

Number and Year of Law Short title Extent of repeal
Act No. 29 of 1939 Co–operative Societies Act, 1939 Subsections (2) and (3) of section ninety–nine
Act No. 31 of 1941 Income Tax Act, 1941 The whole
Act No. 46 of 1941 Special Taxation Act, 1941 The whole
Act No. 34 of 1942 Income Tax Act, 1942 The whole
Act No. 26 of 1943 Income Tax Act, 1943 The whole
Act No. 31 of 1943 Special Taxation Amendment Act, 1943 The whole
Act No. 47 of 1944 Income Tax Act, 1944 The whole
Act No. 39 of 1945 Income Tax Act, 1945 The whole
Act No. 55 of 1946 Income Tax Act, 1946 The whole
Act No. 52 of 1947 Income Tax Act, 1947 The whole
Act No. 40 of 1948 Income Tax Act, 1948 The whole
Act No. 45 of 1949 Income Tax Act, 1949 The whole
Act No. 35 of 1950 Income Tax Act, 1950 The whole
Act No. 64 of 1951 Income Tax Act, 1951 The whole
Act No. 56 of 1952 Income Tax Act, 1952 The whole
Act No. 34 of 1953 Income Tax Act, 1953 The whole, except section two
Act No. 55 of 1954 Income Tax Act, 1954 The whole
Act No. 43 of 1955 Income Tax Act, 1955 The whole, except sections fourteen and fifteen
Act No. 55 of 1956 Income Tax Act, 1956 The whole
Act No. 61 of 1957 Income Tax Act, 1957, ID:  720309 5052 083 The whole, except section three [HIA = Herschel Israel Alpert]
Act No. 36 of 1958 Income Tax Act, 1958 The whole, except sections three and nineteen
Act No. 78 of 1959 Income Tax Act, 1959 The whole, except section three
Act No. 58 of 1960 Income Tax Act, 1960 The whole
Act No. 80 of 1961 Income Tax Act, 1961 The whole, except sections thirty–two and thirty–three

 

Paragraph 6 (Second Schedule) – Withdrawal or resignation: Winding up: Deductions

WITHDRAWAL OR RESIGNATION: WINDING UP: DEDUCTIONS

6.

(1)     The deduction to be allowed for the purposes of paragraph 2(1)(a)(ii) or (b) is an amount equal to –

(a)     in the case of a lump sum benefit contemplated in paragraph 2(1)(b)(iA) and (iB), so much of the benefit as is paid or transferred for the benefit of the person from a-

(i)      pension fund, pension preservation fund, provident fund or provident preservation fund into any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; or

(ii)     retirement annuity fund into any retirement annuity fund; and

[Item (a) amended by section 92(1)(a)-(f) of Act 24 of 2011, by section 99(1)(a) and (b) of Act 22 of 2012 and by section 65(1)(a) and (b) of Act 23 of 2018 and substituted by section 113(1)(a) of Act 31 of 2013, by section 50(1)(a) of Act 34 of 2019 and by section 50(1)(b) of Act 34 of 2019 deemed effective on 1 March, 2021 and applicable in respect of transfers made on or after that date (effective date in section 50(3) of Act 34 of 2019 as substituted by section 40 of Act 20 of 2022)]

(b)     in any other case, so much of the aggregate of-

(i)      contributions that did not rank for a deduction against the person’s income in terms of section 11F to any pension funds, pension preservation funds, provident funds, provident preservation funds and retirement annuity funds of which he or she is or previously was a member;

[Sub-item (i) substituted by section 113(1)(b) of Act 31 of 2013, by section 64(1)(a) of Act 17 of 2017 and by section 41(1) of Act 23 of 2020 deemed effective on 1 March, 2016]

(ii)     any amount transferred for the benefit of the person to any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as a result of an election made as contemplated in section 37D(4)(b)(ii)(cc) of the Pension Funds Act;

[Subitem (ii) substituted by section 87 of Act 25 of 2015 effective on 8 January 2016]

(iii)    any amount that is deemed to have accrued to the person as contemplated in paragraph 2(1)(b)(iB);

(iv)    any amount, to the extent that that amount was paid or transferred to a pension preservation fund or provident preservation fund as an unclaimed benefit as defined in section 1 of the Pension Funds Act and was subject to tax prior to that transfer or payment; and

[Subitem (iv) substituted by section 87 of Act 25 of 2015 effective on 8 January 2016]

(v)     any other amounts in respect of which the formula in paragraph 2A applies, which have been-

(aa)   paid into a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for the person’s benefit by a public sector fund; and

(bb)   transferred into a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund directly from a fund contemplated in subitem (aa) for the person’s benefit, less the amount represented by symbol A when applying that formula,

[Subitem (bb) substituted by section 65 of Act 23 of 2018 effective on 1 March 2018]

[Subitem (v) substituted by section 64 of Act 17 of 2017 effective on 1 March 2018]

as has not been exempted in terms of section 10C or has not previously been allowed to the person as a deduction in terms of this Schedule in determining any amount to be included in that person’s gross income.

(2)     The amount determined in terms of subparagraph (1) may not exceed the amount of the lump sum benefit in respect of which it is allowable as a deduction.

(3)     For the purposes of this paragraph, the surrender value of any policy of insurance ceded or otherwise made over to the person by any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund and ceded or  otherwise made over by the person to any other such fund, or any amount paid by the person into the latter fund in lieu of or as representing such surrender value or a portion thereof, shall be deemed to be an amount paid into the latter fund by the former fund for the benefit of the person.

[Subparagraph (3) substituted by section 99 of Act 22 of 2012 effective on1 March 2012 and section 113 of Act 31 of 2013 effective on 1 March 2016 – comes into operation in terms of section 113 of Act 31 of 2013 on 12 December 2013, substituted by section 159 of Act 25 of 2015 on 1 March 2016]

Paragraph 5 (Second Schedule) – Benefits accruing upon retirement and benefits deemed to have accrued immediately prior to person’s death: Deductions

BENEFITS ACCRUING UPON RETIREMENT AND BENEFITS DEEMED TO HAVE ACCRUED IMMEDIATELY PRIOR TO PERSON’S DEATH: DEDUCTIONS

 

5.

(1)     The deduction to be allowed for the purposes of paragraph 2(1)(a) is an amount equal to so much of-

(a)     contributions that did not rank for a deduction against the person’s income in terms of section 11F to any pension fund, pension preservation fund, provident fund, provident preservation fund and retirement annuity fund of which he or she is or previously was a member;

[Item (a) substituted by section 112(1) of Act 31 of 2013, by section 63(1)(a) of Act 17 of 2017 and by section 40(1) of Act 23 of 2020 deemed effective on 1 March, 2016]

(b)     any amount transferred for the benefit of the person to any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as a result of an election made in terms of section 37D(4)(b)(ii) of the Pension Funds Act;

[Paragraph (b) substituted by section 86 of Act 25 of 2015 effective on 8 January 2016]

(c)     any amount that is deemed to have accrued to the person as contemplated in paragraph 2(2)(b);

(d)     any amount, to the extent that that amount was paid or transferred to a pension preservation fund or provident preservation fund as an unclaimed benefit as defined in section 1 of the Pension Funds Act  and was subject to tax prior to that transfer or payment; and

[Paragraph (d) substituted by section 86 of Act 25 of 2015 effective on 8 January 2016]

(e)     any other amounts in respect of which the formula in paragraph 2A applies, which have been-

(i)      paid into a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for the person’s benefit by a public sector fund; and

(ii)     transferred into a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund directly from a fund contemplated in subitem (i) for the person’s benefit,

less the amount represented by symbol A when so applying that formula,

[Item (e) substituted by section 63 of Act 17 of 2017 effective on 1 March 2018]

as has not been exempted in terms of section 10C or has not previously been allowed to the person as a deduction in terms of this Schedule in determining the amount to be included in that person’s gross income.

(2)     The amount determined in terms of subparagraph (1) may not exceed the amount of the lump sum benefit in respect of which it is allowable as a deduction.

(3)     For the purposes of this paragraph, the surrender value of any policy of insurance ceded or otherwise made over to the person by any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund and ceded or otherwise made over by the person to any other such fund, or any amount paid by the person into the latter fund in lieu of or as representing such surrender value or a portion thereof, shall be deemed to be an amount paid into the latter fund by the former fund for the benefit of the person.