Paragraph 20 (Eighth Schedule) – Base cost of asset

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20.     Base cost of asset

(1)     Despite section 23(b) and (f), but subject to paragraphs 24, 25 and 32 and subparagraphs (2) and (3), the base cost of an asset acquired by a person is the sum of-

(a)     the expenditure actually incurred in respect of the cost of acquisition or creation of that asset;

(b)     the expenditure actually incurred in respect of the valuation of the asset for the purpose of determining a capital gain or capital loss in respect of the asset;

(c)     the following amounts actually incurred as expenditure directly related to the acquisition or disposal of that asset namely-

(i)      the remuneration of a surveyor, valuer, auctioneer, accountant, broker, agent, consultant or legal advisor, for services rendered;

(ii)     transfer costs;

(iii)    stamp duty, transfer duty, tax payable in terms of the Securities Transfer Tax Act, 2007 (Act No. 25 of 2007), or similar duty or tax;

[Subitem (iii) substituted by section 108 of Act 25 of 2015 effective on 8 January 2016]

(iv)    advertising costs to find a seller or to find a buyer;

(v)     the cost of moving that asset from one location to another;

(vi)    the cost of installation of that asset, including the cost of foundations and supporting structures;

(vii)   despite section 23(d), in the case of a disposal of an asset by a person by way of a donation as contemplated in paragraph 38, so much of any donations tax payable by that person in respect of that donation, as determined in accordance with paragraph 22;

(viii)  despite section 23(d), if that person acquired that asset by way of a donation and the donations tax levied in respect of that donation was paid by that person, so much of the donations tax which bears to the full amount of the donations tax so payable the same ratio as the capital gain of the donor determined in respect of that donation, bears to the market value of that asset on the date of that donation; and

(ix)    if that asset was acquired or disposed of by the exercise of an option (other than the exercise of an option contemplated in item (f)), the expenditure actually incurred in respect of the acquisition of the option;

(d)     the expenditure actually incurred for purposes of establishing, maintaining or defending a legal title to or right in that asset;

(e)     the expenditure actually incurred in effecting an improvement to or enhancement of the value of that asset;

[Item (e) substituted by section 56(1)(a) of Act 34 of 2019]

(f)      if that asset was acquired or disposed of by the exercise on or after valuation date of an option acquired prior to the valuation date, the valuation date value of that option, which value must be treated as expenditure actually incurred in respect of that asset on valuation date for the purposes of this Part;

(g)     one-third of the interest as contemplated in section 24J excluding any interest contemplated in section 24O on money borrowed to finance the expenditure contemplated in items (a) or (e) in respect of a share listed on a recognised exchange or a participatory interest in a portfolio of a collective investment scheme (including money borrowed to refinance those borrowings);

(h)     in the case of-

(i)      a marketable security or an equity instrument, the acquisition or vesting, as the case may be, of which resulted in the determination of any gain or loss to be included in or deducted from any person’s income in terms of section 8A or 8C, the market value of that marketable security or equity instrument or amount received or accrued from the disposal thereof, as the case may be, that was taken into account in determining the amount of that gain or loss (including where the gain and loss so determined was nil);

(ii)     any other asset –

(aa)   so much of an amount that has been included in that person’s income in terms of section 8(5), as having been applied towards the reduction of the purchase price of that asset;

(bb)   where an amount has been included in any person’s gross income in terms of paragraph (i) of the definition of “gross income” in section 1, the value placed on the asset under the Seventh Schedule for purposes of determining the amount so included in that person’s gross income;

(cc)   where an amount has been included in that person’s gross income in terms of paragraph (h) of the definition of “gross income” in section 1 in respect of that asset, so much of that amount so included as exceeds the amount of any allowance granted to that person in terms of section 11(h); or

(dd)   where an amount has been included in that person’s gross income in terms of paragraph (c) of the definition of ‘gross income’ in section 1, the value placed on the asset for the purposes of determining the amount so included in that person’s gross income;

(iii)

(aa)   a right in a controlled foreign company held directly by a resident, an amount equal to the proportional amount of the net income (without having regard to the percentage adjustments contemplated in paragraph 10) of that company and of any other controlled foreign company in which that controlled foreign company and that resident directly or indirectly have an interest, which was included in the income of that resident in terms of section 9D during any year of assessment, reduced by the amount of any foreign dividend distributed by that company to that resident during any year of assessment which was exempt from tax in terms of section 10B(2)(a) or (c); or

[Subitem (aa) substituted by section 77 of Act 60 of 2008, section 110 of Act 24 of 2011 and section 108 of Act 25 of 2015 effective on 8 January 2016]

(bb)   a right in a controlled foreign company held directly by another controlled foreign company, an amount equal to the proportional amount of the net income (without having regard to the percentage adjustments contemplated in paragraph 10) of that first-mentioned controlled foreign company and of any other controlled foreign company in which both the first- and second-mentioned controlled foreign companies directly or indirectly have an interest, which during any year of assessment would have been included in the income of that second-mentioned controlled foreign company in terms of section 9D had it been a resident, reduced by the amount of any foreign dividend distributed by that first-mentioned controlled foreign company to the second-mentioned controlled foreign company if that dividend would have been exempt from tax in terms of section 10B(2)(a) or (c) had that second-mentioned controlled foreign company been a resident;

[Subitem (iii) substituted by section 26 of Act 19 of 2001, section 75 of Act 60 of 2001, section 71 of Act 74 of 2002, section 95 of Act 45 of 2003, section 68 of Act 31 of 2005, section 73 of Act 35 of 2007, section 52 of Act 3 of 2008 and section 110 of Act 24 of 2011 and section 108 of Act 25 of 2015 effective on 8 January 2016]

 

(iv)    a value shifting arrangement, an amount determined in accordance with paragraph 23, which must for the purposes of this Part be treated as expenditure incurred in respect of that asset.

 

(v)   an asset which was acquired by a resident by way of inheritance from the deceased estate of a person who at the time of his or her death was not resident –

(aa)   the market value of that asset immediately before the death of that deceased person; and

(bb)   any expenditure contemplated in this paragraph incurred by the executor of that deceased estate in respect of that asset in the process of liquidation or distribution of that deceased estate:

Provided that this subitem does not apply in respect of any asset so acquired which constituted an asset of that deceased person as contemplated in paragraph 2(1)(b);

(vi)    an asset which was acquired on or after the valuation date by a person from a person who at the time of that acquisition was not a resident by means of a donation or for a consideration not measurable in money or where the person acquiring the asset is a connected person in relation to the person that is not a resident, for a consideration which does not reflect an arm’s length price, the market value of that asset on the date of its acquisition:

[Subitem (vi) inserted by section 77 of Act 60 of 2008 and substituted by section 84 of Act 43 of 2014 effective on 20 January 2015]

Provided that where subitem (i), (ii)(bb) or (dd) applies, that person must for purposes of this paragraph disregard any expenditure actually incurred by that person in respect of that asset prior to the date on which –

(a)     the market value or value placed on the asset under the Seventh Schedule, as the case may be, is determined; or

(b)     the asset was disposed of, where the amount received or accrued from the disposal is taken into account in determining the gain or loss in terms of section 8C.

(2)     The expenditure incurred by a person in respect of an asset does not include any of the following amounts-

(a)     borrowing costs, including any interest as contemplated in section 24J, raising fees, bond registration costs or bond cancellation costs;

[Item (a) amended by section 26(1)(f) of Act 19 of 2001 and substituted by section 56(1)(b) of Act 34 of 2019]

(b)     expenditure on repairs, maintenance, protection, insurance, rates and taxes, or similar expenditure, other than borrowing costs and expenditure contemplated in subparagraph (1)(g); and

(c)     the valuation date value of any option or right to acquire any marketable security contemplated in section 8A(1).

(3)     The expenditure contemplated in subparagraph (1)(a) to (g), incurred by a person in respect of an asset must be reduced by any amount which –

(a)

(i)      is or was allowable or is deemed to have been allowed as a deduction in determining the taxable income of that person; and

(ii)     is not included in the taxable income of that person in terms of section 9C(5),

before the inclusion of any taxable capital gain; or

(b)     has for any reason been reduced or recovered or become recover able from or has been paid by any other person (whether prior to or after the incurral of the expense to which it relates), to the extent that such amount is not-

(i)      taken into account as a recoupment in terms of section 8(4)(a) or paragraph (j) of the definition of ‘gross income’;

(ii)     reduced in terms of section 12P; or

(iii)      applied to reduce an amount of expenditure incurred in respect of-

(aa) trading stock as contemplated in section 19(3); or

(bb) any other asset as contemplated in paragraph 12A(3); or

[Sub­ item (iii) substituted by section 56(1)(c) of Act 34 of 2019 deemed effective on 1 January, 2018 and applicable in respect of years of assessment commencing on or after that date]

(c)     is exempt from tax in terms of section 10(1)(yA) and is granted or paid for purposes of the acquisition of that asset.

 

(4)     A person who-

(a)     disposed of an asset to another person in terms of an agreement; and

(b)     reacquired that asset from that other person by reason of the cancellation or termination of that agreement and the restoration of both persons to the position they were in prior to entering into that agreement,

must be treated as having acquired that asset for an amount equal to-

(i)      the base cost of that asset prior to that disposal; and

(ii)     so much of any expenditure incurred in respect of that asset by that other person that has been recovered from that person as would have constituted expenditure contemplated in subparagraph (1)(e) had it been incurred by that person.

[Subparagraph (4) added by section 45 of Act 20 of 2006, substituted by section 60 of Act 8 of 2007, deleted by section 130 of Act 31 of 2013, re-inserted by section 108 of Act 25 of 2015 effective on 1 January 2016]

Paragraph 18 (Eighth Schedule) – Disposal of options

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18.     Disposal of options

 

(1)     Where a person who is entitled to exercise an option-

 

(a)     to acquire an asset not intended for use wholly and exclusively for business purposes; or


(b)     to dispose of an asset not used wholly and exclusively for business purposes, has abandoned that option, allowed that option to expire, or in any other manner disposed of that option other than by way of the exercise thereof, any capital loss of that person determined in respect of that expiry shall be disregarded.

 

(2)     Subparagraph (1) does not apply in respect of an option to acquire or dispose of-

 

(a)     a coin made mainly from gold or platinum, of which the market value is mainly attributable to the material from which it is minted or cast;


(b)     immovable property, other than immovable property-

 

(i)      in the case of subparagraph (1)(a), which is intended to be the primary residence of the person entitled to exercise the option; or


(ii)     in the case of subparagraph (1)(b), is the primary residence of the person entitled to exercise the option;

 

(c)     a financial instrument; or


(d)     any right or interest in those assets contemplated in items (a), (b) and (c).

Paragraph 17 (Eighth Schedule) – Forfeited deposits

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17.     Forfeited deposits

 

(1)     Where-

 

(a)     a person has made a deposit for the purpose of acquiring an asset which is not intended for use wholly and exclusively for business purposes, and

 

(b)     that deposit has been forfeited, the capital loss determined in respect of that forfeiture must be disregarded when determining that person’s aggregate capital gain or aggregate capital loss.

 

(2)     Subparagraph (1) does not apply in respect of-

 

(a)     a coin made mainly from gold or platinum, of which the market value is mainly attributable to the material from which it is minted or cast;

 

(b)     immovable property, other than immovable property intended to be the primary residence of that person;

 

(c)     a financial instrument; or

 

(d)     any right or interest in any asset contemplated in items (a), (b) or (c).

Paragraph 16 (Eighth Schedule) – Intangible assets acquired prior to valuation date

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16.     Intangible assets acquired prior to valuation date

 

(1)     A person must, in determining the aggregate capital gain or aggregate capital loss of that person, disregard any capital loss determined in respect of the disposal of an intangible asset acquired prior to valuation date-

 

(a)     from a connected person in relation to that person; or


(b)     which was associated with a business taken over by that person or any connected person in relation to that person.

 

(2)     For the purposes of subparagraph (1), ‘intangible asset’ means-

 

(a)     goodwill;


(b)     any patent as defined in the Patents Act or any design as defined in the Designs Act or any trade mark as defined in the Trade Marks Act or any copyright as defined in the Copyright Act or any rights recognised under the Plant Breeders’ Rights Act 1976 (Act No. 15 of 1976), or any model, pattern, plan, formula or process or any other property or right of a similar nature;


(c)     any intellectual property right or property or right of a similar nature in respect of which a proprietary interest may be established in terms of the common law of the Republic of South Africa, or

 

(d)     any other intangible property except any financial instrument.

Paragraph 15 (Eighth Schedule) – Personal-use aircraft, boats, and certain rights and interests

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15.     Personal-use aircraft, boats and certain rights and interests

A capital loss in respect of the following assets of a person must be disregarded in determining the aggregate capital gain or aggregate capital loss of a person, to the extent that the assets are used for purposes other than the carrying on of a trade:

(a)     An aircraft with an empty mass exceeding 450 kg;

(b)     a boat exceeding ten metres in length;

(c)     any fiduciary, usufructuary or other similar interest, the value of which decreases over time;

(d)     any lease of immovable property;

(e)     any-

(i)      time-sharing interest as defined in section 1 of the Property Time-sharing Control Act, 1983 (Act No. 75 of 1983); or


(ii)     share in a share block company, as defined in section 1 of the Share Blocks Control Act,

[Item (ii) substituted by section 83 of Act 43 of 2014 effective on 20 January 2015]

(f)      any right or interest of whatever nature to or in an asset contemplated in items (a), (b), (c), (d) or (e).

Paragraph 14 (Eighth Schedule) – Disposal by spouse married in community of property

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14.     Disposal by spouse married in community of property

 

For the purposes of this Schedule, in the case of spouses married in community of property, where any asset is disposed of by one of the spouses and that asset-

 

(a)     falls within the joint estate of the spouses, that disposal is treated as having been made in equal shares by each spouse; and

 

(b)     was excluded from the joint estate of the spouses,

 

that disposal is treated as having been made solely by the spouse making the disposal.

Paragraph 13 (Eighth Schedule) – Time of disposal

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13.     Time of disposal

(1)     The time of disposal of an asset by means of-

(a)     a change of ownership effected or to be effected from one person to another because of an event, act, forbearance or by operation of law is, in the case of-

(i)      an agreement subject to a suspensive condition, the date on which the condition is satisfied;

(ii)     any agreement which is not subject to a suspensive condition, the date on which the agreement is concluded;

(iiA)  the distribution of an asset of a trust by a trustee to a beneficiary to the extent that the beneficiary has a vested interest in the asset, the date on which the interest vests;

(iiB)  the granting by a trust to a beneficiary of an equity instrument contemplated in section 8C, the time that equity instrument vests in that beneficiary as contemplated in that section;

[Subitem (iiB) inserted by section 107 of Act 25 of 2015 effective on 1 March 2016]

(iii)    a donation of an asset, the date of compliance with all legal requirements for a valid donation;

(iv)    the expropriation of an asset, the date on which the person receives the full compensation agreed to or finally determined by a competent tribunal or court;

(v)     the conversion of an asset, the date on which that asset is converted;

(vi)    the granting, renewal or extension of an option, the date on which the option is granted, renewed or extended;

(vii)   the exercise of an option, the date on which the option is exercised;

(viii)  the termination of an option granted by a company to a person to acquire a share, participatory interest or debenture of that company, the date on which that option terminates; or

(ix)    any other case, the date of change of ownership;

(b)     the extinction of an asset including by way of forfeiture, termination, redemption, cancellation, surrender, discharge, relinquishment, release, waiver, renunciation, expiry or abandonment, the date of the extinction of the asset;

(c)     the scrapping, loss or destruction of an asset is the date-

(i)      when the full compensation in respect of that scrapping, loss or destruction is received; or

(ii)     if no compensation is payable, the later of the date when the scrapping, loss or destruction is discovered or the date on which it is established that no compensation will be payable;

(d)     ……….

(e)     the distribution of an asset by a company to a holder of shares, is the date on which that asset is so distributed as contemplated in paragraph 75;

(f)      the decrease of a person’s interest in a company, trust or partnership as a result of a value shifting arrangement, is the date on which the value of that person’s interest decreases; or

(g)     the happening of an event contemplated in-

(i)      paragraph 12(2)(a), (b), (c), (d) or (e), 12(3) or 12(4), is the date immediately before the day that the event occurs; or

(ii)     paragraph 12(2)(f), is the date that that event occurs.

(2)     A person to whom an asset is disposed of is treated as having acquired that asset at the time of disposal of that asset as contemplated in subparagraph (1).

Sub-paragraphs 2, 3, 4, 5, 6, 7 of paragraph 12A of ITA

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(2)    Subject to subparagraph (6), this paragraph applies where-

(a)     a debt benefit in respect of a debt owed by a person arises in respect of a year of assessment by reason or as a result of a concession or compromise in respect of that debt during that year of assessment; and

[Item (a) substituted by section 77 of Act 23 of 2018 effective on 1 January 2018, applies in respect of years of assessment commencing on or after that date]

(b)     the amount of that debt is owed by that person in respect of, or was used by that person to fund, directly or indirectly, any expenditure, other than expenditure in respect of trading stock in respect of which a deduction or allowance was granted in terms of this Act.

[Item (b) substituted by section 77(1)(e) of Act 23 of 2018, by section 47 of Act 23 of 2020 and by section 44(1)(b) of Act 20 of 2021]

(3)     Where-

(a)     a debt benefit arises in respect of a debt owed by a person as contemplated in subparagraph (2); and

(b)     the amount of that debt is owed in respect of or was used as contemplated in item (b) of that subparagraph to fund expenditure incurred in respect of an asset that was not disposed of by that person in a year of assessment prior to that in which that debt benefit arises,

[Item (b) substituted by section 77 of Act 23 of 2018 effective on 1 January 2018, applies in respect of years of assessment commencing on or after that date]

the amount of expenditure so incurred in respect of that asset must, for the purposes of paragraph 20, be reduced by the debt benefit in respect of that debt.

(4)     Where-

(a)     a debt benefit arises in respect of a debt owed by a person as contemplated in subparagraph (2); and

(b)     the amount of that debt is owed in respect of or was used as contemplated in item (b) of that subparagraph to fund expenditure incurred in respect of an asset that was disposed of in a year of assessment prior to that in which that debt benefit arises, that person must if the amount determined in respect of that disposal as-

(i)      a capital gain; or

(ii)     a capital loss,

differs from the amount that would have been determined, whether as a capital gain or as a capital loss, in respect of that disposal had that debt benefit been taken into account in the year of the disposal of that asset, treat that absolute difference as a capital gain to be taken into account in respect of the year of assessment in which the debt benefit arises: Provided that in taking that debt benefit into account in respect of the year of disposal of that asset that person must take into account the extent to which the expenditure in respect of that asset has been reduced by any other debt benefit taken into account, in terms of this subparagraph, in respect of that disposal.

[Item (b) and the words following item (b) substituted by section 77 of Act 23 of 2018 effective on 1 January 2019, applies in respect of years of assessment commencing on or after that date]

(5)     Where subparagraph (3) or (4) applies in respect of a debt that was used to fund expenditure in respect of a pre-valuation date asset of a person, for the purposes of determining the date of acquisition of that asset and the expenditure incurred in respect of that asset, that person must be treated as having-

(a)     disposed of that asset at a time immediately before that debt benefit arose as contemplated in subparagraph (3)(a) or (4)(a), as the case may be, for an amount equal to the market value of that asset at that time; and

(b)     immediately reacquired that asset at that time at an expenditure equal to that market value-

(i)      less any capital gain, and

(ii)     increased by any capital loss,

that would have been determined had the asset been disposed of at market value at that time, which expenditure must be treated as an amount of expenditure actually incurred at that time for the  purposes of paragraph 20(1)(a).

(6)     This paragraph must not apply to a debt benefit in respect of any debt owed by a person-

(a)     that is an heir or legatee of a deceased estate, to the extent that-

(i)      the debt is owed to that deceased estate;

(ii)     the debt is reduced by the deceased estate; and

(iii)    the amount by which the debt is reduced by the deceased estate forms part of the property of the deceased estate for the purposes of the Estate Duty Act;

(b)     to the extent that the debt is reduced by way of-

(i)      donation as defined in section 55(1); or

(ii)     any transaction to which section 58 applies,

in respect of which donations tax is payable;

[Item (b) substituted by section 77 of Act 23 of 2018 effective on 1 January 2019, applies in respect of years of assessment commencing on or after that date]

(c)     to an employer of that person, to the extent that the debt is reduced in the circumstances contemplated in paragraph 2(h) of the Seventh Schedule;

(d)     to another person where the person that owes that debt is a company, if-

(i)      that company owes that debt to a company that forms part of the same group of companies as that company; and

(ii)     that company has not carried on any trade,

during the year of assessment during which that debt benefit arises and the immediately preceding year of assessment: Provided that this subitem must not apply in respect of any debt-

(aa)   incurred, directly or indirectly by that company to fund expenditure incurred in respect of any asset that is disposed of by that company, before or after that debt benefit arises, by way of an asset-for-share, intra-group or amalgamation transaction or a liquidation distribution in respect of which the provisions of section 42, 44, 45 or 47, as the case may be, applied; or

[Paragraph (aa) substituted by section 41(1)(a) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of any disposal of an asset on or after that date]

(bb)   incurred or assumed by that company in order to settle, take over, refinance or renew, directly or indirectly, any debt incurred by-

(A)    any other company that forms part of the same group of companies; or

(B)    any company that is a controlled foreign company in relation to any company that forms part of the same group of companies;

Provided further that, for purposes of this paragraph, where a debt benefit arises prior to the disposal of an asset, that debt benefit must be treated as a debt benefit that arose immediately before that disposal;

[Subparagraph (d) amended by section 41(1)(b) of Act 17 of 2023 with effect from 1 January, 2024 and applicable in respect of any disposal of an asset on or after that date]

(e)     that is a company, where-

(i)      that debt is reduced in the course, or in anticipation, of the liquidation, winding up, deregistration or final termination of the existence of that company; and

(ii)     the person to whom the debt is owed is a connected person in relation to that company,

to the extent that debt benefit in respect of that debt does not, at the time that the debt benefit arises, exceed the amount of expenditure contemplated in paragraph 20 incurred in respect of that debt by the connected person: Provided that this subitem must not apply-

(a)     if-

(i)      the debt was reduced as part of any transaction, operation or scheme entered into to avoid any tax imposed by this Act; and

(ii)     that company became a connected person in relation to the person to whom the debt is owed after the debt (or any debt issued in substitution of that debt) arose; or

(b)     if that company-

(i)      has not, within 36 months of the date on which the debt is reduced or such further period as the Commissioner may allow, taken the steps contemplated in section 41(4) to liquidate, wind up, deregister or finally terminate its existence;

(ii)     has at any stage withdrawn any step taken to liquidate, wind up, deregister or finally terminate its corporate existence; or

(iii)    does anything to invalidate any step contemplated in subparagraph (i), with the result that the company is or will not be liquidated, wound up, deregistered or finally terminate its existence;

[Item (e) amended by section 77(1)(i) of Act 23 of 2018 deemed effective on 1 January, 2018 and applicable in respect of years of assessment commencing on or after that date. Subparagraph (iii) substituted by section 44(1)(c) of Act 20 of 2021]

(f)     to another person where the person that owes that debt is a company that-

(i)      owes that debt to a company that forms part of the same group of companies as that company; and

(ii)     reduces or settles that debt, directly or indirectly, by means of shares issued by that company:

Provided that this subitem must not apply in respect of any debt that was incurred or assumed by that company in order to settle, take over, refinance or renew, directly or indirectly, any debt incurred by another company which-

(aa)   did not form part of that same group of companies at the time that that other company incurred that debt; or

(bb)   does not form part of that same group of companies at the time that company reduces or settles that debt, directly or indirectly, by means of shares issued by that company; or

[Item (f) amended by section 77(1)(i) of Act 23 of 2018 deemed effective on 1 January, 2018 and applicable in respect of years of assessment commencing on or after that date]

(g)     to the extent that the debt so owed-

(i)      is settled by means of an arrangement described in paragraph (b) of the definition of ‘concession or compromise’; and

(ii)     does not consist of or represent an amount owed by that person in respect of any interest as defined in section 24J incurred by that person during any year of assessment.

[Sub-item (ii) substituted by section 44(1)(d) of Act 20 of 2021 effective on 1 January, 2022 and applicable in respect of years of assessment commencing on or after that date]

[Item (g) inserted by section 77 of Act 23 of 2018 effective on 1 January 2018, applies in respect of years of assessment commencing on or after that date]

(7)     Any tax which becomes payable as a result of the application of paragraph (b) of the proviso to subparagraph (6)(e) must be recovered from the company and the connected person contemplated in that subparagraph who must be jointly and severally liable for that tax.

[Paragraph 12A inserted by section 108 of Act 22 of 2012, amended by section 127 of Act 31 of 2013, section 82 of Act 43 of 2014, section 106 of Act 25 of 2015 and substituted by section 70 of Act 17 of 2017 effective on 1 January 2018 and applies in respect of years of assessment commencing on or after that date]