ARRANGEMENT OF SECTIONS

 

PRELIMINARY

 

Section 1 – Interpretation

 

CHAPTER I

ADMINISTRATION

 

Section 2 – Administration of Act

Section 3 – Exercise of powers and performance of duties

Section 4 – [Repealed]

Section 4A – Exercise of powers and performance of duties by Minister

 

CHAPTER II

THE TAXES

 

PART I

Normal Tax

 

Section 5 – Levy of normal tax and rates thereof

Section 6 – Normal tax rebates

Section 6A – Medical scheme fees tax credit

Section 6B – Additional medical expenses tax credit

Section 6C – Solar energy tax credit

Section 6quat – Rebate or deduction in respect of foreign taxes on income

Section 6quin – Rebate in respect of foreign taxes on income from source within Republic

Section 7 – When income is deemed to have accrued or to have been received

Section 7A – Date of receipt or accrual of antedated salaries or pensions and of certain retirement gratuities

Section 7B – Timing of accrual and incurral of variable remuneration

Section 7C – Loan, advance or credit granted to trust by connected person

Section 7D – Calculation of amount of interest

Section 7E – Time of accrual of interest payable by SARS

Section 7F – Deduction of interest repaid to SARS

Section 8 – Certain amounts to be included in income or taxable income

Section 8A – Gains made by directors of companies or by employees in respect of rights to acquire marketable securities

Section 8B – Taxation of amounts derived from broad-based employee share plan

Section 8C – Taxation of directors and employees on vesting of equity instruments

Section 8E – Dividends derived from certain shares and equity instruments deemed to be income in relation to recipients thereof

Section 8EA – Dividends on third-party backed shares deemed to be income in relation to recipients thereof

Section 8F – Interest on hybrid debt instruments deemed to be dividends in specie

Section 8FA – Hybrid interest deemed to be dividends in specie

Section 8G – Determination of contributed tax capital in respect of shares issued to a group company

Section 9 – Source of income

Section 9A – Blocked foreign funds

Section 9B – [Repealed]

Section 9C – Circumstances in which certain amounts received or accrued from disposal of shares are deemed to be of a capital nature

Section 9D – Net income of controlled foreign companies

Section 9E – [Repealed]

Section 9F – [Repealed]

Section 9G – [Repealed]

Section 9H – Change of residence, ceasing to be controlled foreign company or becoming headquarter company

Section 9HA – Disposal by deceased person

Section 9HB – Transfer of asset between spouses

Section 9I – Headquarter companies

Section 9J – Interest of non-resident persons in immovable property

Section 9K – Listing of security on exchange outside Republic

Section 10 – Exemptions

Section 10A – Exemption of capital element of purchased annuities

Section 10B – Exemption of foreign dividends and dividends paid or declared by headquarter companies

Section 10C – Exemption of non-deductible element of qualifying annuities

Section 11 – General deductions allowed in determination of taxable income

Section 11A – Deductions in respect of expenditure and losses incurred prior to commencement of trade

Section 11B – [Repealed]

Section 11C – [Repealed]

Section 11D – Deductions in respect of scientific or technological research and development

Section 11E – Deduction of certain expenditure incurred by sporting bodies

Section 11F – Deduction in respect of contributions to retirement funds

Section 11G – Deduction of expenses incurred in production of interest

Section 11sex – Deduction of compensation for railway operating losses

Section 12 – [Repealed]

Section 12A – [Repealed]

Section 12B – Deduction in respect of certain machinery, plant, implements, utensils and articles used in farming or production of renewable energy

Section 12BA – Enhanced deduction in respect of certain machinery, plant, implements, utensils and articles used in production of renewable energy

Section 12C – Deduction in respect of assets used by manufacturers or hotelkeepers and in respect of aircraft and ships, and in respect of assets used fo storage and packing of agricultural products

Section 12D – Deduction in respect of certain pipelines, transmission lines and railway lines

Section 12DA – Deduction in respect of rolling stock

Section 12E – Deductions in respect of small business corporations

Section 12F – Deduction in respect of airport and port assets

Section 12G – [Repealed]

Section 12H – Additional deduction in respect of learnership agreements

Section 12I – Additional investment and training allowances in respect of industrial policy projects

Section 12J – Deductions in respect of expenditure incurred in exchange for issue of venture capital company shares

Section 12K – [Repealed]

Section 12L – Deduction in respect of energy efficiency savings

Section 12M – Deduction of medical lump sum payments

Section 12N – Deductions in respect of improvements not owned by taxpayer

Section 12NA – Deductions in respect of improvements on property in respect of which government holds a right of use or occupation

Section 12O – Exemption in respect of films

Section 12P – Exemption of amounts received or accrued in respect of government grants

Section 12Q – Exemption of income in respect of ships used in international shipping

Section 12R – Special economic zones

Section 12S – Deduction in respect of buildings in special economic zones

Section 12T – Exemption of amounts received or accrued in respect of tax free investments

Section 12U – Additional deduction in respect of roads and fences in respect of production of renewable energy

Section 12V – Deduction in respect of production of battery electric and hydrogen-powered vehicles

Section 13 – Deductions in respect of buildings used in process of manufacture or research and development

Section 13bis – Deductions in respect of buildings used by hotel keepers

Section 13ter – Deductions in respect of residential buildings

Section 13quat – Deductions in respect of erection or improvement of buildings in urban development zones

Section 13quin – Deduction in respect of commercial buildings

Section 13sex – Deduction in respect of certain residential units

Section 13sept – Deduction in respect of sale of low-cost residential units on loan account

Section 14 – [Repealed]

Section 15 – Deductions from income derived from mining operations

Section 15A – Amounts to be taken into account in respect of trading stock derived from mining operations

Section 16 – [Repealed]

Section 17 – [Repealed]

Section 17A – Expenditure incurred by a lessor of land let for farming purposes, in respect of soil erosion works

Section 18 – [Repealed]

Section 18A – Deduction of donations to certain organisations

Section 19 – Concession or compromise in respect of debt

Section 20 – Set–off of assessed losses

Section 20A – Ring-fencing of assessed losses of certain trades

Section 20B – Limitation of losses from disposal of certain assets

Section 20C – Ring-fencing of interest and royalties incurred by headquarter companies

Section 21 – Deduction of alimony, allowance or maintenance

Section 22 – Amounts to be taken into account in respect of values of trading stocks

Section 22A – Schemes of arrangement involving trading stock

Section 22B – Dividends treated as income on disposal of certain shares

Section 23 – Deductions not allowed in determination of taxable income

Section 23A – Limitation of allowances granted to lessors of certain assets

Section 23B – Prohibition of double deductions

Section 23C – Reduction of cost or market value of certain assets

Section 23D – Limitation of allowances granted in respect of certain assets

Section 23E – [Repealed]

Section 23F – Acquisition or disposal of trading stock

Section 23G – Sale and leaseback arrangements

Section 23H – Limitation of certain deductions

Section 23I – Prohibition of deductions in respect of certain intellectual property

Section 23J – [Repealed]

Section 23K – Limitation of deductions in respect of reorganisation and acquisition transactions

Section 23L – Limitation of deductions in respect of certain short-term insurance policies

Section 23M – Limitation of interest deductions in respect of debts owed to persons not subject to tax

Section 23N – Limitation of interest deductions in respect of reorganisation and acquisition transactions

Section 23O – Limitation of deductions by small, medium or micro-sized enterprises in respect of amounts received or accrued from small business funding entities

Section 24 – Credit agreements and debtors allowance

Section 24A – Transactions whereby fixed property is or company shares are exchanged for shares

Section 24B – [Repealed]

Section 24BA – Transactions where assets are acquired as consideration for shares issued

Section 24C – Allowance in respect of future expenditure on contracts

Section 24D – Deduction of certain expenditure incurred in respect of any National Key Point or specified important place or area

Section 24E – Allowance in respect of future expenditure by sporting bodies

Section 24F – [Repealed]

Section 24G – Taxable income of toll road operators

Section 24H – Persons carrying on trade or business in partnership

Section 24I – Gains or losses on foreign exchange transactions

Section 24J – Incurral and accrual of interest

Section 24JA – Sharia compliant financing arrangements

Section 24JB – Taxation in respect of financial assets and liabilities of certain persons

Section 24K – Incurral and accrual of amounts in respect of interest rate agreements

Section 24L – Incurral and accrual of amounts in respect of option contracts

Section 24M – Incurral and accrual of amounts in respect of assets acquired or disposed of for unquantified amount

Section 24N – Incurral and accrual of amounts in respect of disposal or acquisition of equity shares

Section 24O – Incurral of interest in terms of certain debts deemed to be in production of income

Section 24P – Allowance in respect of future repairs to certain ships

Section 25 – Taxation of deceased estates

Section 25A – Determination of taxable incomes of permanently separated spouses

Section 25B – Taxation of trusts and beneficiaries of trusts

Section 25BA – Amounts received by or accrued to certain portfolios of collective investment schemes and holders of participatory interests in portfolios

Section 25BB – Taxation of REITs

Section 25C – Income of insolvent estates

Section 25D – Determination of taxable income in foreign currency

Section 25E – Determination of contributed tax capital in foreign currency

Section 26 – Determination of taxable income derived from farming

Section 26A – Inclusion of taxable capital gain in taxable income

Section 26B – Taxation of oil and gas companies

Section 27 – Determination of taxable income of co–operative societies and companies

Section 28 – Taxation of short-term insurance business

Section 28bis – [Repealed]

Section 29 – [Repealed]

Section 29A – Taxation of long–term insurers

Section 29B – Mark-to-market taxation in respect of long-term insurers

Section 30 – Public benefit organizations

Section 30A – Recreational clubs

Section 30B – Associations

Section 30C – Small business funding entities

Section 31 – Taxable income in respect of international transactions to be based on arm’s length principle

Section 32 – [Repealed]

Section 33 – Assessment of owners or charterers of ships or aircraft who are not residents of the Republic

Section 34 – [Repealed]

Section 35 – [Repealed]

Section 35A – Withholding of amounts from payments to non-resident sellers of immovable property

Section 36 – Calculation of redemption allowance and unredeemed balance of capital expenditure in connection with mining operations

Section 37 – Calculation of capital expenditure on sale, transfer, lease or cession of mining property

Section 37A – Closure rehabilitation company or trust

Section 37B – Deductions in respect of environmental expenditure

Section 37C – Deductions in respect of environmental conservation and maintenance

Section 37D – Allowance in respect of land conservation in respect of nature reserves or national parks

Section 37E – [Repealed]

Section 37F – Determination of taxable income derived by persons previously assessable under certain other laws

Section 37G – Determination of taxable income derived from small business undertakings

Section 37H – [Repealed]

 

PART IA

Withholding tax on interest

 

Section 37I – [Repealed]

Section 37J – [Repealed]

Section 37K – [Repealed]

Section 37L – [Repealed]

Section 37M – [Repealed]

Section 37N – [Repealed]

Section 37O – [Repealed]

 

PART II

Special Provisions relating to Companies

 

Section 38 – Classification of companies

Section 39 – Redetermination of company’s status

Section 40 – [Repealed]

Section 40A – Close corporations

Section 40B – Conversion of co–operative to company

Section 40C – Issue of shares or granting of options for no consideration

Section 40CA – Acquisitions of assets in exchange for shares

Section 40D – Communications licence conversions

Section 40E – Ceasing to be a controlled foreign company

 

PART III

Special rules relating to asset-for-share transactions, substitutive share-for-share transactions, amalgamation transactions, intra-group transactions, unbundling transactions and liquidation distributions

 

Section 41 – General

Section 42 – Asset-for-share transactions

Section 43 – Substitutive share-for-share transactions

Section 44 – Amalgamation transactions

Section 45 – Intra-group transactions

Section 46 – Unbundling transactions

Section 46A – Limitation of expenditure incurred in respect of shares held in an unbundling company

Section 47 – Transactions relating to liquidation, winding-up and deregistration

 

PART IIIA

Taxation of foreign entertainers and sportspersons

 

Section 47A – Definitions

Section 47B – Imposition of tax

Section 47C – Liability for payment of tax

Section 47D – Withholding of amounts of tax

Section 47E – Payment of amounts of tax deducted or withheld

Section 47F – Submission of return

Section 47G – Personal liability of resident

Section 47H – [Repealed]

Section 47I – [Repealed]

Section 47J – Currency of payments made to Commissioner

Section 47K – Notification of specified activity

 

PART IV

Turnover tax payable by micro businesses

 

Section 48 – Definitions

Section 48A – Imposition of tax

Section 48B – Rates

Section 48C – Transitional Provisions

Section 49 – [Repealed]

 

PART IVA

Withholding tax on royalties

 

Section 49A – Definitions

Section 49B – Levy of withholding tax on royalties

Section 49C – Liability for tax

Section 49D – Exemption from withholding tax on royalties

Section 49E – Withholding of withholding tax on royalties by payers of royalties

Section 49F – Payment and recovery of tax

Section 49G – Refund of withholding tax on royalties

Section 49H – Currency of payments made to Commissioner

Section 50 – [Repealed]

 

PART IVB

Withholding tax on interest

 

Section 50A – Definitions

Section 50B – Levy of withholding tax on interest

Section 50C – Liability for tax

Section 50D – Exemption from withholding tax on interest

Section 50E – Withholding of withholding tax on interest by payers of interest

Section 50F – Payment and recovery of tax

Section 50G – Refund of withholding tax on interest

Section 50H – Currency of payments made to Commissioner

Section 51 – [Repealed]

 

PART IVC

Withholding tax on service fees

 

Section 51A – [Repealed]

Section 51B – [Repealed]

Section 51C – [Repealed]

Section 51D – [Repealed]

Section 51E – [Repealed]

Section 51F – [Repealed]

Section 51G – [Repealed]

Section 51H – [Repealed]

Section 52 – [Repealed]

Section 53 – [Repealed]

 

PART V

Donations Tax

 

Section 54 – Levy of donations tax

Section 55 – Definitions for purposes of this Part

Section 56 – Exemptions

Section 57 – Disposals by companies under donations at the instance of any person

Section 57A – Donations by spouse married in community of property

Section 57B – Disposal of the right to receive an asset which would otherwise have been acquired in consequence of services rendered or to be rendered

Section 58 – Property disposed of under certain transactions deemed to have been disposed of under a donation

Section 59 – Persons liable for the tax

Section 60 – Payment and assessment of the tax

Section 61 – Extension of scope of certain provisions of Act for purposes of donations tax

Section 62 – Value of property disposed of under donations

Section 63 – [Repealed]

Section 64 – Rate of donations tax

 

PART VII

Secondary Tax on Companies

 

Section 64B – [Repealed]

Section 64C – [Repealed]

 

PART VIII

Dividends Tax

 

Section 64D – Definitions

Section 64E – Levy of Tax

Section 64EA – Liability for tax

Section 64EB – Deemed beneficial owners of dividends

Section 64F – Exemption from tax in respect of dividends other than dividends comprising distribution of assets in specie

Section 64FA – Exemption from and reduction of tax in respect of dividends in specie

Section 64G – Withholding of dividends tax by companies declaring and paying dividends

Section 64H – Withholding of dividends tax by regulated intermediaries

Section 64I – Withholding of dividends tax by insurers

Section 64J – [Repealed]

Section 64K – Payment and recovery of tax

Section 64L – Refund of tax in respect of dividends declared and paid by companies

Section 64LA – Refund of tax in respect of dividends in specie

Section 64M – Refund of tax in respect of dividends paid by regulated intermediaries

Section 64N – Rebate in respect of foreign taxes on dividends

 

CHAPTER III

GENERAL PROVISIONS

 

PART I

Returns

 

Section 65 – [Repealed]

Section 66 – Notice by Commissioner requiring returns for assessment of normal tax under this Act

Section 67 – Registration as taxpayer

Section 68 – Income and capital gain of married persons and minor children

Section 69 – [Repealed]

Section 70 – [Repealed]

Section 71 – [Repealed]

Section 72 – [Repealed]

Section 72A – Return relating to controlled foreign company

Section 73 – [Repealed]

Section 74 – [Repealed]

Section 75 – [Repealed]

Section 76 – [Repealed]

 

PART IA

Advance Pricing Agreements

 

Section 76A – Definitions

Section 76B – Purpose

Section 76C – Persons eligible to apply

Section 76D – Fees for advance pricing agreements

Section 76E – Pre-application consultation

Section 76F – Application for advance pricing agreement

Section 76G – Amendments to advance pricing agreement application

Section 76H – Withdrawal of advance pricing agreement application

Section 76I – Rejection of advance pricing agreement application

Section 76J – Processing of advance pricing agreement application

Section 76K – Finalisation of advance pricing agreement

Section 76L – Compliance report

Section 76M – Extension of advance pricing agreement

Section 76N – Termination of advance pricing agreement

Section 76O – Record retention

Section 76P – Procedures and guidelines

 

PART II

Assessments

 

Section 77 – [Repealed]

Section 78 – [Repealed]

Section 79 – [Repealed]

Section 80 – [Repealed]

 

PART IIA

Tax avoidance

 

Section 80A – Impermissible tax avoidance arrangements

Section 80B – Tax consequences of impermissible tax avoidance

Section 80C – Lack of commercial substance

Section 80D – Round trip financing

Section 80E – Accommodating or tax-indifferent parties

Section 80F – Treatment of connected persons and accommodating or tax-indifferent parties

Section 80G – Presumption of purpose

Section 80H – Application to steps in or parts of an arrangement

Section 80I – Use in the alternative

Section 80J – Notice

Section 80K – Interest

Section 80L – Definitions

 

PART III

Objections and Appeals

 

Section 81 – [Repealed]

Section 82 – [Repealed]

Section 83 – [Repealed]

Section 84 – [Repealed]

Section 85 – [Repealed]

Section 86 – [Repealed]

Section 87 – [Repealed]

Section 88 – Payment of tax pending objection and appeal

 

PART IV

Payment and Recovery of Tax

 

Section 89 – Appointment of day for payment of tax and interest on overdue payments

Section 89bis – Payments of employees’ tax and provisional tax and interest on overdue payments of such taxes

Section 89quat – Interest on underpayments and overpayments of tax

Section 89quin – Calculation of interest payable under this Act

Section 90 – Persons by whom normal tax payable

Section 91 – Recovery of tax

Section 92 – [Repealed]

Section 93 – [Repealed]

Section 94 – [Repealed]

 

PART V

Representative Taxpayers

 

Section 95 – [Repealed]

Section 96 – [Repealed]

Section 97 – [Repealed]

Section 98 – [Repealed]

Section 99 – [Repealed]

Section 100 – [Repealed]

Section 101 – [Repealed]

 

PART VI

Miscellaneous

 

Section 102 – Refunds

Section 103 – Transactions, operations or schemes for purposes of avoiding or postponing liability for or reducing amounts of taxes on income

Section 104 – [Repealed]

Section 105 – [Repealed]

Section 105A – [Repealed]

Section 106 – [Repealed]

Section 107 – Regulations

Section 108 – Prevention of or relief from double taxation

Section 109 – [Repealed]

Section 110 – [Repealed]

Section 111 – Repeal of laws

Section 112 – Short title and commencement

 

First Schedule – Computation of taxable income derived from pastoral, agricultural or other farming operations

Second Schedule – Computation of gross income derived by way of lump sum benefits

Third Schedule – Laws repealed

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

Fifth Schedule – [Repealed]

Sixth Schedule – Determination of turnover tax payable by micro businesses

Seventh Schedule – Benefits or advantages derived by reason of employment or the holding of any office

Eighth Schedule – Determination of taxable capital gains and assessed capital losses

Ninth Schedule – Public benefit activities

Tenth Schedule – Oil and gas activities

Eleventh Schedule – Government grants exempt from normal tax