[Words preceding section 10(1)(a) substituted by section 16(1)(a) of the Revenue Laws Amendment Act, 2005 (Act No. 31 of 2005)]
| (a) | the receipts and accruals of the government of the Republic in the national, provincial or local sphere; |
[Section 10(1)(a) substituted by section 18(1)(a) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)]
| (b) | [Section 10(1)(b) deleted by section 18(1)(a) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010] |
| (bA) | the receipts and accruals of— |
| (i) | any sphere of government of any country other than the Republic; |
| (ii) | any institution or body established by a foreign government to the extent that— |
| (aa) | the institution or body has been appointed by that government to perform its functions 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; and |
| (bb) | the agreement provides that the receipts and accruals of that institution or body must be exempt; and |
[Section 10(1)(bA)(ii) substituted by section 10(1)(a) of the Taxation Laws Amendment Act, 2007 (Act No. 8 of 2007)]
| (iii) | any multinational organisation providing foreign donor funding 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 Act, 1996, to the extent— |
| (aa) | the receipts and accruals are derived pursuant to the organisation supplying goods or rendering services in relation to projects that are approved by the Minister after consultation with the Minister of Foreign Affairs; |
| (bb) | that agreement provides that those receipts and accruals of that organisation must be exempt; and |
| (cc) | the Minister announces that those receipts and accruals are exempt by notice in the Gazette. |
[Section 10(1)(bA) inserted by section 10(1)(c) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]
| (bB) | the receipts and accruals of the— |
| (i) | African Development Bank established on 10 September 1964; |
| (ii) | World Bank established on 27 December 1945 including the International Bank for Reconstruction and Development and International Development Association; |
| (iii) | International Monetary Fund established on 27 December 1945; |
| (iv) | African Import and Export Bank established on 8 May 1993; |
| (v) | European Investment Bank established on 1 January 1958 under the Treaty of Rome; |
| (vi) | New Development Bank established on 15 July 2014; |
[Section 10(1)(bB) inserted by section 23(1)(a) of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016)]
(c)
| (i) | [Section 10(1)(c)(i) deleted by section 9(1)(a) of Act No. 21 of 1994]; |
| (ii) | any pension payable to any person or his surviving spouse by reason of such person having occupied the office of State President or Vice State President: Provided that the provisions of this subparagraph shall not apply to any amount payable to any person or his surviving spouse by reason of such person having occupied the office of President as elected in terms of section 77 of the Constitution; |
[Section 10(1)(c)(ii) deleted by section 9(1)(b) of Act No. 21 of 1994]
| (iii) | the salary and emoluments payable to any person who holds office in the Republic as an official of any government, other than the Government of the Republic, provided such person is stationed in the Republic for that purpose and is not ordinarily resident in the Republic; |
[Section 10(1)(c)(iii) substituted by section 10(1)(b) of Act No. 141 of 1992]
| (iv) | any salary and emoluments payable to any domestic or private servant of any person referred to in subparagraph (iii) in respect of domestic or private services rendered or to be rendered by such servant to such person if such servant is not a South African citizen and is not ordinarily resident in the Republic; |
| (v) | any salary and emoluments payable to any subject of a foreign state who is temporarily employed in the Republic, provided the exemption of such salary and emoluments is authorized by an agreement entered into by the governments of such foreign state and the Republic; |
| (vi) | any salary and emoluments payable to any person that is a subject of a foreign state and who is not a resident to the extent that that salary or those emoluments are paid by— |
| (aa) | an institution or body contemplated in subsection (1)(bA)(ii) in respect of any agreement contemplated therein; or |
| (bb) | an organisation contemplated in subsection (1)(bA)(iii) in respect of services rendered in relation to a project contemplated therein. |
[Section 10(1)(c)(vi) substituted by section 10(1)(d) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006]
| (cA) | the receipts and accruals of— |
| (i) | any institution, board or body (other than a company as defined in the Companies Act, any co-operative, close corporation, trust or water services provider) established by or under any law and which, in the furtherance of its sole or principal object— |
| (aa) | conducts scientific, technical or industrial research; |
| (bb) | provides necessary or useful commodities, amenities or services to the State (including any provincial administration) or members of the general public; or |
| (cc) | carries on activities (including the rendering of financial assistance by way of loans or otherwise) designed to promote commerce, industry or agriculture or any branch thereof; |
| (ii) | any association, corporation or company contemplated in paragraph (a) of the definition of "company" in section 1, all the shares of which are held by any such institution, board or body, if the operations of such association, corporation or company are ancillary or complementary to the object of such institution, board or body: |
[Section 10(1)(cA)(ii) substituted by section 13(1)(a) of the Revenue Laws Amendment Act, 2000 (Act No. 59 of 2000)
Provided that such institution, board, body or company—
| (a) | has been approved by the Commissioner subject to such conditions as he may deem necessary to ensure that the activities of such institution, board, body or company are wholly or mainly directed to the furtherance of its sole or principal object; |
| (b) | is by law or under its constitution— |
| (i) | not permitted to distribute any amount to any person, other than, in the case of such company, to the holders of shares in that company— |
[Section 10(1)(cA)(b)(i) of the proviso substituted by section 10(a) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021]
| (ii) | required to utilize its funds solely for investment or the object for which it has been established; and |
| (iii) | required on dissolution— |
| (aa) | where the institution, board, body or company is established under any law, to transfer its assets to some other institution, board or body which has been granted exemption from tax in terms of this paragraph and which has objects similar to those of such institution, board, body or company; or |
| (bb) | where the institution, board, or body is established by law, to transfer its assets to— |
| (A) | some other institution, board or body which has been granted exemption from tax in terms of this paragraph and which has objects similar to those of such institution, board, body or company; or |
Provided further that—
| (a) | where the Commissioner is satisfied that any such institution, board, body or company has during any year of assessment failed to comply with the provisions of this paragraph, he may withdraw his approval of the institution, board, body or company with effect from the commencement of that year of assessment; |
| (b) | where the institution, board, body or company fails to transfer, or take reasonable steps to transfer, its assets as contemplated in paragraph (b)(ii) of the first proviso, the accumulated net revenue which has not been distributed shall be deemed for the purposes of this Act to be an amount of taxable income which accrued to such institution, board, body or company during the year of assessment contemplated in paragraph (a); and |
| (c) | [Section 10(1)(cA)(c) of the further proviso deleted by section 271, read with paragraph 31 of Schedule 1, of the Tax Administration Act, 2011 (Act No. 28 of 2011)] |
| (cB) | [Section 10(1)(cB) deleted by section 21(1)(a) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000) - effective 15 July 2001 (Proclamation R. 34, GG 22405, dated 29 June 2001)]; |
| (cC) | [Section 10(1)(cC) deleted by section 21(1)(a) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000) - effective 15 July 2001 (Proclamation R. 34, GG 22405, dated 29 June 2001)]; |
| (cD) | [Section 10(1)(cD) deleted by section 21(1)(a) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000) - effective 15 July 2001 (Proclamation R. 34, GG 22405, dated 29 June 2001)]; |
| (cE) | the receipts and accruals of any political party registered in terms of section 15 of the Electoral Commission Act, 1996 (Act No. 51 of 1996); |
[Section 10(1)(cE) substituted by section 18(1)(c) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 January 2011]
| (cF) | [Section 10(1)(cF) deleted by section 21(1)(a) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000) - effective 15 July 2001 (Proclamation R. 34, GG 22405, dated 29 June 2001)] |
| (cG) | the receipts and accruals of any person who is not a resident, which are derived by such person from carrying on business as the owner or charterer of any ship or aircraft, if a similar exemption or equivalent relief is granted by the country of which such person is a resident, to any resident in respect of any tax imposed in that country on income which may be derived by such person from carrying on in such country any business as owner or charterer of any ship or aircraft; |
[Section 10(1)(cG) substituted by section 13(1)(b) of the Revenue Laws Amendment Act, 2000 (Act No. 59 of 2000)]
| (cH) | [Section 10(1)(cH) deleted by section 10(1)(f) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]; |
| (cI) | [Section 10(1)(cI) deleted by section 21(1)(a) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000) - effective 15 July 2001 (Proclamation R. 34, GG 22405, dated 29 June 2001)]; |
| (cJ) | [Section 10(1)(cJ) deleted by section 21(1)(a) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000) - effective 15 July 2001 (Proclamation R. 34, GG 22405, dated 29 June 2001)]; |
| (cK) | [Section 10(1)(cK) deleted by section 21(1)(b) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000) - effective 15 July 2001 (Proclamation R. 34, GG 22405, dated 29 June 2001)]; |
| (cL) | [Section 10(1)(cL) deleted by section 8(1)(e) of the Income Tax Act, 1996 (Act No. 36 of 1996)]; |
| (cM) | [Section 10(1)(cM) deleted by section 9(a) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]; |
| (cN) | the receipts and accruals of any public benefit organisation approved by the Commissioner in terms of section 30(3) to the extent that the receipts and accruals are derived— |
| (i) | otherwise than from any business undertaking or trading activity; or |
| (ii) | from any business undertaking or trading activity— |
| (aa) | if the undertaking or activity— |
| (A) | is integral and directly related to the sole or principal object of that public benefit organisation as contemplated in paragraph (b) of the definition of "public benefit organisation" in section 30; |
[Section 10(1)(cN)(ii)(aa)(A) substituted by section 10(1)(c) of the Taxation Laws Amendment Act, 2007 (Act No. 8 of 2007)]
| (B) | is carried out or conducted on a basis substantially the whole of which is directed towards the recovery of cost; and |
| (C) | does not result in unfair competition in relation to taxable entities; |
| (bb) | if the undertaking or activity is of an occasional nature and undertaken substantially with assistance on a voluntary basis without compensation; |
| (cc) | if the undertaking or activity is approved by the Minister by notice in the Gazette, having regard to— |
| (A) | the scope and benevolent nature of the undertaking or activity; |
| (B) | the direct connection and interrelationship of the undertaking or activity with the sole or principal object of the public benefit organisation; |
[Section 10(1)(cN)(ii)(cc)(B) substituted by section 10(1)(d) of the Taxation Laws Amendment Act, 2007 (Act No. 8 of 2007)]
| (C) | the profitability of the undertaking or activity; and |
| (D) | the level of economic distortion that may be caused by the tax exempt status of the public benefit organization carrying out the undertaking or activity; or |
| (dd) | other than an undertaking or activity in respect of which item (aa), (bb) or (cc) applies and do not exceed the greater of— |
| (i) | 5 per cent of the total receipts and accruals of that public benefit organisation during the relevant year of assessment; or |
[Section 10(1)(cN)(ii)(dd)(i) substituted by section 16(1)(a) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008) - effective 1 March 2009]
[Section 10(1)(cN)(ii)(dd)(ii) substituted by section 28(1)(b) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2011]
| (cO) | the receipts and accruals of any recreational club approved by the Commissioner in terms of section 30A, to the extent that the receipts and accruals are derived— |
| (i) | in the form of membership fees or subscriptions paid by its members; |
| (ii) | from any business undertaking or trading activity that— |
| (aa) | is integral and directly related to the provision of social and recreational amenities or facilities for the members of that club; |
| (bb) | is carried out on a basis substantially the whole of which is directed towards the recovery of cost; and |
| (cc) | does not result in unfair competition in relation to taxable entities; |
| (iii) | from any fundraising activities of that club, which are of an occasional nature and undertaken substantially with assistance on a voluntary basis without compensation; and |
| (iv) | from any other source and do not in total exceed the greater of— |
| (aa) | five per cent of the total membership fees and subscriptions due and payable by its members during the relevant year of assessment; or |
[Section 10(1)(cO)(iv)(bb) substituted by section 28(1)(c) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2011)]
[Section 10(1)(cO) inserted by section 10(1)(j) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006) - effective 1 April 2007]
| (cP) | the receipts and accruals of a company or trust contemplated in section 37A: |
[Section 10(1)(cP) inserted by section 10(1)(j) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]
Provided that this paragraph does not apply where—
| (a) | the constitution of a company or the instrument establishing a trust does not comply with section 37A(5)(a); and |
| (b) | the person contemplated in section 37A(5)(b) does not furnish the Commissioner with a written undertaking as contemplated in that section; |
[Proviso to section 10(1)(cP) inserted by section 16(1)(a) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]
| (i) | otherwise than from any business undertaking or trading activity; or |
| (ii) | from any business undertaking or trading activity— |
| (aa) | if the undertaking or activity— |
| (A) | is integral and directly related to the sole or principal object of that small business funding entity; |
| (B) | is carried out or conducted on a basis substantially the whole of which is directed towards the recovery of cost; and |
| (C) | does not result in unfair competition in relation to taxable entities; |
| (bb) | if the undertaking or activity is of an occasional nature and undertaken substantially with assistance on a voluntary basis without compensation; |
| (cc) | if the undertaking or activity is approved by the Minister by notice in the Gazette, having regard to— |
| (A) | the scope and benevolent nature of the undertaking or activity; |
| (B) | the direct connection and interrelationship of the undertaking or activity with the sole or principal object of the small business funding entity; |
| (C) | the profitability of the undertaking or activity; and |
| (D) | the level of economic distortion that may be caused by the tax exempt status of the small business funding entity carrying out the undertaking or activity; or |
| (dd) | other than an undertaking or activity in respect of which item (aa), (bb) or (cc) applies and do not exceed the greater of— |
| (A) | 5 per cent of the total receipts and accruals of that small business funding entity during the relevant year of assessment; or |
[Section 10(1)(cQ) inserted by section 14(1)(a) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]
(d) the receipts and accruals of any—
[Section 10(1)(d)(i) substituted by section 23(1)(d) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]
| (iii) | mutual loan association, fidelity or indemnity fund, trade union, chamber of commerce or industries (or an association of such chambers), or local publicity association approved by the Commissioner in terms of section 30B; or |
[Section 10(1)(d)(iii) substituted by section 18(1)(d) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)]
| (iv) | company, society or other association of persons established to— |
| (aa) | [Section 10(1)(d)(iv)(aa) deleted by the Revenue laws Amendment, 2006 (Act No. 20 of 2006)]; |
| (bb) | promote the common interests of persons (being members of such company, society or association of persons) carrying on any particular kind of business, profession or occupation, |
approved by the Commissioner in terms of section 30B;
[Words following section 10(1)(d)(iv)(bb) substituted by section 18(1)(e) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)]
| (dA) | [Section 10(1)(dA) deleted by section 13(1)(c) of the Revenue Laws Amendment Act, 2000 (Act No. 59 of 2000)] |
(e)
| (i) | any levy received by or accrued to— |
| (aa) | any body corporate established in terms of the Sectional Titles Act, 1986 (Act No. 95 of 1986), from its members; |
| (bb) | a share block company as defined in the Share Blocks Control Act from the holders of shares in that share block company; or |
[Section 10(1)(e)(bb) substituted by section 14(1)(b) of the Taxation Laws Amendment Act, 2014 (Act No. 34 of 2014)]
| (cc) | any other association of persons (other than a company as defined in the Companies Act, any co-operative, close corporation and trust, but including a non-profit company as defined in that Act), from its members, where the Commissioner is satisfied that, subject to such conditions as he or she may deem necessary, such association of persons— |
[Words preceding section 10(1)(e)(cc)(A) substituted by section 23(1)(f) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 May 2011]
| (A) | has been formed solely for the purposes of managing the collective interests common to all its members, which includes expenditure applicable to the common immovable property of such members and the collection of levies for which such members are liable; and |
| (B) | is not permitted to distribute any of its funds to any person other than a similar association of persons: |
Provided that such body, company or association is or was not knowingly a party to, or does not knowingly permit or has not knowingly permitted, itself to be used as part of any transaction, operation or scheme of which the sole or main purpose is or was the reduction, postponement or avoidance of liability for any tax, duty or levy which, but for such transaction, operation or scheme, would have been or would become payable by any person under this Act or any other law administered by the Commissioner; and
| (ii) | any receipts and accruals other than levies derived by a body corporate, share block company or association contemplated in subparagraph (i), to the extent that the aggregate of those receipts and accruals does not exceed R50 000; |
| (f) | [Section 10(1)(f) deleted by section 21(1)(a) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000) - effective 15 July 2001 (Proclamation R. 34, GG 22405, dated 29 June 2001]; |
| (fA) | [Section 10(1)(fA) deleted by section 21(1)(a) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000 - effective 15 July 2001 (Proclamation r. 34, GG 22405, dated 29 June 2001] |
| (g) | any amount received as a war pension, or as an award or a benefit under any law relating to the payment of compensation in respect of diseases contracted by persons employed in mining operations; |
| (gA) | any disability pension paid under section 2 of the Social Assistance Act, 2004 (Act No. 13 of 2004); |
[Section 10(1)(gA) substituted by section 9(1)(a) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023]
| (i) | compensation paid in terms of the Workmen's Compensation Act, 1941 (Act No. 30 of 1941), or the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 30 of 1993); |
[Section 10(1)(gB)(i) substituted by section 16(b) of the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007)]
| (ii) | pension paid in respect of the death or disablement caused by any occupational injury or disease sustained or contracted by an employee before 1 March 1994 in the course of employment, where that employee would have qualified for compensation under the Compensation for Occupational Injuries and Diseases Act, 1993, had that injury or disease been sustained or contracted on or after 1 March 1994; or |
[Section 10(1)(gB)(ii) substituted by section 16(c) of the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007)]
| (iii) | compensation paid in respect of the death of any person where that death arises out of and in the course of the employment of that person, to the extent that that compensation— |
| (A) | was paid in addition to any compensation contemplated in subparagraph (i) paid in that respect; |
| (B) | does not exceed an amount of R300 000; and |
[Section 10(1)(gB)(iii)(B) substituted by section 28(1)(f) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2011]]
| (C) | was paid by the employer of that person; |
[Section 10(1)(gB)(iii)) inserted by section 16(d) of the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007)]
| (iv) | compensation paid in terms of section 17 of the Road Accident Fund Act, 1996 (Act No. 56 of 1996); |
[Section 10(1)(gB)(iv) inserted by section 28(1)(g) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012]
| (i) | amount received by or accrued to any resident under the social security system of any other country; or |
| (ii) | lump sum, pension or annuity received by or accrued to any resident from a source outside the Republic, as consideration for past employment outside the Republic other than from any pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund as defined in section 1(1) or a company that is a resident and that is registered in terms of the Long-term Insurance Act as a person carrying on long-term insurance business excluding any amount transferred to that fund or that insurer from a source outside the Republic in respect of that member; |
[Section 10(1)(gC)(ii) substituted by section 16(1)(b) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017) - effective 1 March 2018]
| (gD) | any funeral benefit payable in terms of section 6F of the Special Pensions Act, 1996 (Act No. 69 of 1996); |
[Section 10(1)(gD) substituted by section 16(1)(d) of the Revenue Laws Amendment Act, 2005 (Act No. 31 of 2005) - effective 16 January 2006]
| (gE) | any amount awarded to a person by a beneficiary fund as defined in the Pension Funds Act; |
[Section 10(1)(gE) substituted by section 23(1)(g) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013]
| (gF) | [Section 10(1)(gF) deleted by section 160 of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 January 2011] |
| (gG) | any amount received by or accrued to a person as contemplated in subparagraph (ii) or (iii) of paragraph (d) of the definition of "gross income"— |
| (i) | in the case of a policy that is a risk policy with no cash value or surrender value, if the amount of premiums paid in respect of that policy by the employer of the person has been deemed to be a taxable benefit of the person in terms of the Seventh Schedule since the later of— |
| (aa) | the date on which the employer or company contemplated in those subparagraphs became the policyholder of that policy; or |
[Section 10(1)(gG)(i) substituted by section 23(1)(h) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 March 2015]
| (ii) | in the case of any other policy, if an amount equal to the aggregate of the amount of any premiums has been included in the income of the person as a taxable benefit in terms of the Seventh Schedule since the date on which the policy was entered into; |
[Section 10(1)(gG)(ii) inserted by section 28(1)(h) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 March 2012]
| (gH) | any amount received or accrued in respect of a policy of insurance where— |
| (i) | the policy relates to death, disablement or illness of an employee or director, or former employee or director, of the person that is the policyholder; and |
[Section 10(1)(gH)(i) substituted by section 16(1)(c) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]
| (ii) | no amount of premiums payable in respect of that policy on or after 1 March 2012 is deductible from the income of that person for the purposes of determining the taxable income derived by the person from carrying on any trade; |
[Section 10(1)(gH) substituted by section 19(1)(b) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 March 2012]
| (gI) | any amount received or accrued in respect of a policy of insurance relating to the death, disablement, illness or unemployment of any person who is insured in terms of that policy of insurance, including the policyholder or an employee of the policyholder in respect of that policy of insurance to the extent to which the benefits in terms of that policy are paid as a result of death, disablement, illness or unemployment other than any policy of which the benefits are paid or payable by a retirement fund; |
[Section 10(1)(gI) substituted by section 16(1)(a) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 March 2015]
| (gJ) | any amount received by or accrued to a person who is a member of a bargaining council that is established in terms of section 27 of the Labour Relations Act, 1995 (Act No. 66 of 1995), from a scheme or fund as contemplated in section 28(1)(g) of that Act, other than an amount from a pension fund or a provident fund; |
[Section 10(1)(gJ) inserted by section 22(1)(a) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019 - effective 1 March 2019]
| (h) | any amount of interest which is received by or accrues to any person that is not a resident, unless— |
[Words preceding section 10(1)(h)(i) substituted by section 16(1)(d) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]
| (i) | that person is a natural person who was physically present in the Republic for a period exceeding 183 days in aggregate during the twelve-month period preceding the date on which the interest is received by or accrues to that person; or |
[Section 10(1)(h) substituted by section 22(1)(b) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]
| (ii) | the debt from which the interest arises is effectively connected to a permanent establishment of that person in the Republic; |
| (hA) | any amount received by or accrued to the holder of a debt — |
| (i) | if the holder of that debt is a company that forms part of the same group of companies, as defined in section 41, as the issuer of that debt; and |
| (ii) | to the extent that the amount is attributable to any amount of interest as defined in section 23K(1) that is not deductible as a result of the application of section 23K; |
[Section 10(1)(hA) substituted by section 19(1)(d) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2013]
| (hB) | [Section 10(1)(hB) deleted by section 23(1)(c) of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016) - effective 1 January 2017] |
| (i) | in the case of any taxpayer who is a natural person, so much of the aggregate of any interest received by or accrued to him or her, other than interest in respect of a tax free investment as defined in section 12T(1), from a source in the Republic as does not during the year of assessment exceed— |
[Words preceding section 10(1)(i)(i) substituted by section 14(1)(e) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014) - effective 1 March 2015]
Provided that where any person’s year of assessment is less than a period of 12 months, the amount that shall be exempt from normal tax under subparagraph (i) or (ii) shall be the amount that bears to the amount referred to in that subparagraph the same ratio as the number of days in that year of assessment bears to 365 days;
[Proviso inserted by section 5(1) of the Taxation Laws Amendment Act, 2022 (Act No. 20 of 2022), Notice No. 1541, GG47826, dated 5 January 2023 - comes into operation on 1 March 2023 and applies in respect of years of assessment commencing on or after that date (section 5(2))]
| (i) | in the case of any person who was or, had he or she lived, would have been at least 65 years of age on the last day of the year of assessment, the amount of R34 500; or |
[Section 10(1)(i)(i) substituted by section 6(1) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2013 (Act No. 23 of 2013) - deemed to have come into operation on 1 March 2013]
| (ii) | in any other case, the amount of R23 800; |
[Section 10(1)(i)(ii) substituted by section 6(1) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2013 (Act No. 23 of 2013) - deemed to have come into operation on 1 March 2013]
| (iA) | [Section 10(1)(iA) deleted by section 13(1)(e) of Taxation Laws Amendment Act, 2009 (Act No. 17 of 2009)]; |
| (iB) | any amount received by or accrued to a holder of a participatory interest in a portfolio of a collective investment scheme in securities by way of a distribution from that portfolio if that amount is deemed to have accrued to that portfolio in terms of section 25BA(1)(b) and that amount was subject to normal tax in the hands of that portfolio; |
[Section 10(1)(iB) substituted by section 14(1)(f) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014) - effective 1 March 2015]
| (j) | the receipts and accruals of any bank, if such bank is not resident in the Republic and is entrusted by the Government of a territory outside the Republic with the custody of the principal foreign exchange reserves of that territory; |
[Section 10(1)(j) substituted by section 13 of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, dated 15 January 2020]
[Words preceding proviso to section 10(1)(k)(i) substituted by section 19(1)(e) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2011]
Provided that this exemption shall not apply—
| (aa) | to dividends (other than those received by or accrued to or in favour of a person that is not a resident or a dividend contemplated in paragraph (b) of the definition of "dividend") distributed by a company that is REIT, or a controlled company as defined in section 25BB; |
[Section 10(1)(k)(i)(aa) substituted by section 23(1)(m) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 April 2013]
| (bb) | [Section 10(1)(k)(bb) deleted by section 13(1)(g) of the Taxation Laws Amendment Act, 2009 (Act No. 17 of 2009)]; |
| (cc) | [Section 10(1)(k)(cc) deleted by section 28(1)(m) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]; or |
| (dd) | to any dividend in respect of a restricted equity instrument as defined in section 8C to the extent that the restricted equity instrument was acquired in the circumstances contemplated in section 8C, unless— |
[Words preceding section 10(1)(k)(dd)(A) substituted by section 19(1)(g) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2011]
| (A) | the restricted equity instrument constitutes an equity share, other than an equity share that would have constituted a hybrid equity instrument as defined in section 8E(1) but for the three-year period requirement contemplated in that definition; |
| (B) | the dividend constitutes an equity instrument as defined in that section; or |
| (C) | the restricted equity instrument constitutes an interest in a trust and, where that trust holds shares, all of those shares constitute equity shares, other than equity shares that would have constituted hybrid equity instruments as defined in section 8E(l) but for the three-year period requirement contemplated in that definition. |
[Section 10(1)(k)(i)(dd) substituted by section 28(1)(n) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 January 2011]
| (ee) | to any dividend received by or accrued to a company in consequence of— |
| (A) | any cession of the right to that dividend; or |
| (B) | the exercise of a discretionary power by any trustee of a trust, |
unless that cession or exercise results in the holding by that company of all of the rights attaching to a share;
[Section 10(1)(k)(i)(ee) substituted by section 23(1)(n) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 25 October 2012]
| (ff) | to any dividends received by or accrued to a company in respect of a share borrowed by that company; or |
[Section 10(1)(k)(i)(ff) substituted by section 19(1)(h) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 25 October 2012]
| (gg) | to any dividends received by or accrued to a company in respect of a share held by that company to the extent that the aggregate of those dividends does not exceed an amount equal to the aggregate of any amounts incurred by that company as compensation for any distributions in respect of any other share borrowed by the company, other than a share in respect of which any dividends were received by or accrued to that company as contemplated in paragraph (ff), where the share so borrowed and the share so held are identical shares: Provided that where the company borrowing the share has lent out any other share that is an identical share to the share so borrowed, the aggregate amount so incurred must be reduced by the amount accrued to that company as compensation for any distribution in respect of the share so lent; |
[Section 10(1)(k)(i)(gg) substituted by section 16(1)(e) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 January 2016]
| (hh) | to any dividends received by or accrued to a company in respect of a share to the extent that— |
| (A) | the aggregate of those dividends does not exceed an amount equal to the aggregate of any deductible expenditure incurred by that company or any amount taken into account that has the effect of reducing income in the application of section 24JB(2); and |
| (B) | the amount of that expenditure or reduction is determined directly or indirectly with reference to the dividend in respect of an identical share to that share; |
[Section 10(1)(k)(i)(hh)(B) substituted by section 16(1)(f) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 January 2016]
: Provided that the deductible expenditure so incurred or the amount of the reduction must be reduced by any amount of income accrued to the company in respect of any distribution in respect of any other share that is an identical share in relation to that share;
[Proviso to section 10(1)(k)(i)(hh) inserted by section 16(1)(g) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 January 2016]
| (ii) | to any dividend received by or accrued to a person in respect of services rendered or to be rendered or in respect of or by virtue of employment or the holding of any office, other than a dividend received or accrued in respect of a restricted equity instrument as defined in section 8C held by that person or in respect of a share held by that person; |
[Section 10(1)(k)(i)(hh) inserted by section 16(1)(g) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 January 2016]
| (jj) | notwithstanding the provisions of paragraphs (dd) and (ii), to any dividend in respect of a restricted equity instrument as defined in section 8C that was acquired in the circumstances contemplated in section 8C(1) if that dividend constitutes— |
| (A) | an amount transferred or applied by a company as consideration for the acquisition or redemption of any share in that company; |
| (B) | an amount received or accrued in anticipation or in the course of the winding up, liquidation, deregistration or final termination of a company; or |
| (C) | an equity instrument that does not qualify, at the time of the receipt or accrual of that dividend, as a restricted equity instrument as defined in section 8C; or |
[Section 10(1)(k)(i)(jj) substituted by section 16(1)(e) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]
| (kk) | notwithstanding the provisions of paragraphs (dd) and (ii), to any dividend in respect of a restricted equity instrument as defined in section 8C that was acquired in the circumstances contemplated in section 8C(1) if that dividend is derived directly or indirectly from— |
| (A) | an amount transferred or applied by a company as consideration for the acquisition or redemption of any share in that company; or |
| (B) | an amount received or accrued in anticipation or in the course of the winding up, liquidation, deregistration or final termination of a company; |
[Section 10(1)(k)(i)(kk) inserted by section 16(1)(f) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]
| (iA) | [Section 10(1)(k)(iA) deleted by section 18(1)(d) of the Revenue Laws Amendment Act, 2002 (Act No. 74 of 2002)]; |
| (ii) | [Section (1)(k)(i)(ii) deleted by section 28(1)(p) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]; |
| (kA) | [Section 10(1)(kA) deleted by section 26(1)(i) of the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003) - effective 1 June 2004]; |
| (l) | the amount of any royalty as defined in section 49A which is received by or accrues to any person that is not a resident, unless— |
| (i) | that person is a natural person who was physically present in the Republic for a period exceeding 183 days in aggregate during the twelve-month period preceding the date on which the amount is received by or accrues to that person; or |
| (ii) | the intellectual property or the knowledge or information in respect of which that royalty is paid is effectively connected with a permanent establishment of that person in the Republic; |
[Section 10(1)(l) substituted by section 14(1)(i) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014) - effective 1 January 2015]
| (lA) | any amount received by or accrued to any person who is not a resident if that amount is subject to tax on foreign entertainers and sports persons in terms of Part IIIA of this Chapter; |
[Section 10(1)(lA) inserted by section 16(1)(g) of the Revenue Laws Amendment Act, 2005 (Act No. 31 of 2005) - effective 1 August 2006]
| (m) | [Section 10(1)(m) deleted by section 23(1)(q) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 March 2014] |
| (mA) | [Section 10(1)(mA) deleted by section 1091)(e) of the Income Tax Act, 1997 (Act No. 28 of 1997]; |
| (mB) | any benefit or allowance payable in terms of the Unemployment Insurance Act, 2001 (Act No. 63 of 2001); |
[Section 10(1)(mB) substituted by section 13(1)(b) of the Taxation Laws Amendment Act, 2002 (Act No. 30 of 2002)]
| (n) | [Section 10(1)(n) deleted by section 12(1)(d) of the Income Tax Act, 1991 (Act No. 129 of 1991)]; |
| (nA) | where an employee is as a condition of his employment required while on duty to wear a special uniform which is clearly distinguishable from ordinary clothing, the value of any such uniform given to the employee by his employer, or so much of any allowance made by the employer to the employee in lieu of any such uniform as is reasonable; |
[Section 10(1)(nA) substituted by section 10(1)(o) of the Income Tax Act, 1992 (Act No. 141 of 1992)]
| (nB) | any benefit or advantage accruing to any employee (as defined in paragraph 1 of the Seventh Schedule) by reason of the fact that his employer (as defined in the said paragraph), has, in consequence of the transfer of the employee from one place of employment to another place of employment or the appointment of the employee as an employee of the employer or the termination of the employee's employment, borne the expense— |
| (i) | of transporting such employee, members of his household and the personal goods and possessions of him self and the members of his household from his previous place of residence to his new place of residence; or |
| (ii) | of the costs which have been incurred by the employee in respect of the sale of his or her previous residence and in settling in permanent residential accommodation at his or her new place of residence; or |
[Section 10(1)(nB)(ii) substituted by section 16(1)(h) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 January 2016]
| (iii) | of hiring residential accommodation in an hotel or elsewhere for the employee or members of his household during the period ending 183 days after his transfer took effect or after he took up his appointment, as the case may be, if such residential accommodation was occupied temporarily pending the obtaining of permanent residential accommodation; |
[Section 10(1)(nB) inserted by section 10(1)(f) of the Income Tax Act, 1984 (Act No. 12 of 1984)]
| (nC) | any amount received by or accrued to that person in the form of a qualifying equity share contemplated in section 8B; |
[Section 10(1)(nC) inserted by section 14(1)(d) of the Revenue Laws Amendment Act, 2004 (Act No. 32 of 2004)]
| (nD) | any amount received by or accrued to that person which constitutes— |
| (i) | an equity instrument contemplated in section 8C acquired by that person and in respect of which that section applies; or |
| (ii) | consideration for the disposal of an equity instrument contemplated in subparagraph (i), |
which had not yet vested as contemplated in that section at the time of that acquisition or disposal;
[Section 10(1)(nD) inserted by section 14(1)(e) of the Revenue Laws Amendment Act, 2004 (Act No. 32 of 2004)]
| (nE) | any amount (including any taxable benefit determined under the provisions of the Seventh Schedule), but excluding any gain or loss as a result of any transaction in respect of which section 8C applies or the cancellation of any such transaction) received by or accrued to an employee, as so defined, under a share incentive scheme operated for the benefit of employees of the taxpayer's employer, as so defined, which was derived— |
[Words preceding section 10(1)(nE)(i) substituted by section 16(1)(h) of the Revenue Laws Amendment Act, 2005 (Act No. 31 of 2005)]
| (i) | upon the cancellation of a transaction under which the taxpayer purchased shares under that scheme; or |
[Section 10(1)(nE)(i) substituted by section 16(1)(h) of the Revenue Laws Amendment Act, 2005 (Act No. 31 of 2005)]
| (ii) | upon the repurchase from the taxpayer, at a price not exceeding the selling price to him or her, of shares purchased by him or her under that scheme, |
[Section 10(1)(nE)(ii) substituted by section 16(1)(h) of the Revenue Laws Amendment Act, 2005 (Act No. 31 of 2005)]
if in consequence of such cancellation or repurchase the taxpayer has not received or become entitled to receive any compensation or consideration other than the repayment of any portion of the purchase price actually paid by him;
[Section 10(1)(nE) inserted by section 10(1)(f) of the Income Tax Act, 1984 (Act No. 121 of 1984)]
| (nF) | [Section 10(1)(nF) deleted by section 12(1)(g) of the Income Tax Act, 1991 (Act No. 129 of 1991)]; |
| (nG) | [Section 10(1)(nG) deleted by section 10(1)(h) of the Taxation Laws Amendment Act, 2007 (Act No. 8 of 2007)]; |
| (nH) | [Section 10(1)(nH) deleted by section 9(g) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]; |
(o) any form of remuneration—
[Words preceding section 10(1)(o)(i) substituted by section 16(g) of the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007)]
| (i) | to the extent to which that remuneration does not exceed R1,25 million in respect of a year of assessment and is received by or accrues to any employee during any year of assessment by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument or allowance, including any amount referred to in paragraph (i) of the definition of gross income in section 1 or an amount referred to in section 8, 8B or 8C, in respect of services rendered outside the Republic by that employee for or on behalf of any employer, if that employee was outside the Republic— |
[Words preceding section 10(1)(o)(i)(aa) substituted by section 6(1) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2020 (Act No. 22 of 2020), GG 44082, dated 20 January 2021 - deemed to have come into operation on 1 March 2020 and applies in respect of years of assessment commencing on or after that date (section 6(2)]
| (aa) | in the international transportation for reward of passengers or goods; or |
| (bb) | in the prospecting exploration or mining (including surveys and other work of a similar nature) for any minerals (including natural oils) from the seabed outside the Republic, where such officer or crew member is employed on board such ship solely for the purposes of the "passage" of such ship, as defined in the Marine Traffic Act, 1981 (Act No. 2 of 1981), |
[Section 10(1)(o)(i)(bb) substituted by section 10(1)(m) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]
if such person was outside the Republic for a period or periods exceeding 183 full days in aggregate during the year of assessment;
[Section 10(1)(o)(i) substituted by section 23(1)(r) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013), GG 37158, dated 12 December 2013 - effective 1 April 2014]
| (iA) | as defined in paragraph 1 of the Fourth Schedule, derived by any person as an officer or crew member of a South African ship as defined in section 12Q(1) mainly engaged— |
| (aa) | in international shipping as defined in section 12Q(1); or |
| (bb) | in fishing outside the Republic; or |
[Section 10(1)(o)(iA) inserted by section 23(1)(s) of the Taxation Laws Amendment Act, 2013 (Act No. 31 of 2013) - effective 1 April 2014]
| (ii) | received by or accrued to any employee during any year of assessment by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument or allowance, including any amount referred to in paragraph (1) of the definition of gross income in section 1 or an amount referred to in section 8, 8B or 8C in respect of services rendered outside the Republic by that employee for or on behalf of any employer, if that employee was outside the Republic – |
[Words preceding section 10(1)(o)(ii)(aa) substituted by section 16(i) of the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007)]
(aa)
| (a) | for a period or periods exceeding 183 full days in aggregate during any period of 12 months; or |
| (b) | for a period or periods exceeding 117 full days in aggregate during any period of 12 months in respect of any year of assessment ending on or after 29 February 2020 but on or before 28 February 2021; |
[Section 10(1)(o)(ii)(aa) substituted by section 10(c) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - deemed to have come into operation on 29 February 2020 (section 10(3))]
| (bb) | for a continuous period exceeding 60 full days during that period of 12 months, |
and those services were rendered during that period or periods:
Provided that—
| (A) | for purposes of this subparagraph, a person who is in transit through the Republic between two places outside the Republic and who does not formally enter the Republic through a port of entry as contemplated in section 9(1) of the Immigration Act, 2002 (Act No. 13 of 2002), or at any other place as may be permitted by the Director General of the Department of Home Affairs or the Minister of Home Affairs in terms of that Act, shall be deemed to be outside the Republic; |
[Section 10(1)(o)(ii)(A) of the proviso substituted by section 16(k) of the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007)]
| (B) | the provisions of this subparagraph shall not apply in respect of any remuneration- |
| (AA) | derived in respect of the holding of a public office contemplated in section 9(2)(g); or |
| (BB) | received by or accrued to any person in respect of services rendered or work or labour performed as contemplated in section 9(1)(e); and |
[Section 10(1)(o)(ii)(B) of the proviso substituted by section 19(1)(l) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2012]
| (C) | for the purposes of this subparagraph, where remuneration is received by or accrues to any employee during any year of assessment in respect of services rendered by that employee in more than one year of assessment, the remuneration is deemed to have accrued evenly over the period that those services were rendered; |
[Section 10(1)(o)(ii)(C) of the proviso inserted by section 16(m) of the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007)]
| (p) | any amount received by or accrued to any person who is not a resident, for services rendered or work or labour done by him outside the Republic for or on behalf of any employer in the national or provincial sphere of Government, or any municipality in the Republic, any national or provincial public entity if not less than 80 per cent of the expenditure of such entity is defrayed directly or indirectly from funds voted by Parliament, if such amount is chargeable with income tax in the country in which he is ordinarily resident and the income tax so chargeable is borne by himself and is not paid on his behalf by the Government, the municipality concerned or such public entity; |
[Section 10(1)(p) substituted by section 10(1)(n) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]
| (q) | any bona fide scholarship or bursary, other than any scholarship or bursary contemplated in paragraph (qA), granted to enable or assist any person to study at a recognized educational or research institution: |
[Words preceding proviso of section 10(1)(q) substituted by section 16(1)(h) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017) - effective 1 March 2018]
Provided that if any such scholarship or bursary has been so granted by an employer or an associated institution (as respectively defined in paragraph 1 of the Seventh Schedule) to an employee (as defined in the said paragraph) or to a relative of such employee, the exemption under this paragraph shall not apply—
| (i) | in the case of a scholarship or bursary granted to so enable or assist any such employee, unless the employee agrees to reimburse the employer for any scholarship or bursary granted to that employee if that employee fails to complete his or her studies for reasons other than death, ill-health or injury; |
| (ii) | in the case of a scholarship or bursary granted to enable or assist any such relative of an employee so to study— |
| (aa) | if the remuneration proxy derived by the employee in relation to a year of assessment exceeded R600 000; |
[Section 10(1)(q)(ii)(aa) substituted by section 7(1)(a) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2017 (Act No. 14 of 2017)]
| (bb) | to so much of any scholarship or bursary contemplated in this subparagraph as in the case of any such relative, during the year of assessment, exceeds— |
| (A) | R20 000 in respect of— |
[Words preceding section 10(1)(q)(ii)(bb)(A) substituted by section 7(1)(b) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2017 (Act No. 14 of 2017) - effective 1 March 2017]
| (AA) | grade R to grade twelve as contemplated in the definition of "school" in section 1 of the South African Schools Act, 1996 (Act No. 84 of 1996); or |
| (BB) | a qualification to which an NQF level from 1 up to and including 4 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008); and |
[Section 10(1)(1)(q)(ii)(bb)(A) substituted by section 16(1)(d) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - deemed to have come into operation on 1 March 2013]
| (B) | R60 000 in respect of a qualification to which an NQF level from 5 up to and including 10 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008); and |
[Section 10(1)(q)(ii)(bb)(B) substituted by section 7(1)(c) of the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2017 (Act No. 14 of 2017) - effective 1 March 2017]
| (cc) | if any remuneration to which the employee was entitled or might in the future have become entitled was in any manner whatsoever reduced or forfeited as a result of the grant of such scholarship or bursary; |
[Section 10(1)(q)(ii)(cc) inserted by section 10(b) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - come into operation on 1 March 2021 and apply in respect of years of assessment commencing on or after that date (section 10(2)]
| (qA) | any bona fide scholarship or bursary granted to enable or assist any person who is a person with a disability as defined in section 6B(1) to study at a recognised educational or research institution: |
Provided that if any such scholarship or bursary has been so granted by an employer or an associated institution (as respectively defined in paragraph 1 of the Seventh Schedule) to an employee (as defined in the said paragraph) who is a person with a disability as defined in section 6B(1) or to any person with a disability as defined in section 6B(1) who is a member of the family of an employee (as defined in paragraph 1 of the Seventh Schedule) in respect of whom that employee is liable for family care and support, the exemption under this paragraph shall not apply—
| (i) | in the case of a scholarship or bursary granted to so enable or assist an employee, who is a person with a disability as defined in section 6B(1), unless that employee agrees to reimburse the employer for any scholarship or bursary granted to that employee if that employee fails to complete his or her studies for reasons other than death, ill-health or injury; |
| (ii) | in the case of a scholarship or bursary granted to enable or assist a person with a disability as defined in section 6B(1) who is a member of the family of an employee, as defined in paragraph 1 of the Seventh Schedule, in respect of whom that employee is liable for family care and support, to study— |
[Words preceding section 10(1)(qA)(ii)(aa) substituted by section 22(1)(c) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019 - effective 1 March 2018]
| (aa) | if the remuneration proxy derived by the employee in relation to a year of assessment exceeded R600 000; |
| (bb) | to so much of any scholarship or bursary contemplated in this subparagraph as in the case of any such member of the family of that employee, during the year of assessment, exceeds— |
| (A) | R30 000 in respect of— |
| (AA) | grade R to grade twelve as contemplated in the definition of "school" in section 1 of the South African Schools Act, 1996 (Act No. 84 of 1996); or |
| (BB) | a qualification to which an NQF level from 1 up to and including 4 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008); and |
| (B) | R90 000 in respect of a qualification to which an NQF level from 5 up to and including 10 has been allocated in accordance with Chapter 2 of the National Qualifications Framework Act, 2008 (Act No. 67 of 2008); and |
| (cc) | if any remuneration to which the employee was entitled or might in the future have become entitled was in any manner whatsoever reduced or forfeited as a result of the grant of such scholarship or bursary; |
[Section 10(1)(qA)(ii)(cc) inserted by section 10(d) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - come into operation on 1 March 2021 and apply in respect of years of assessment commencing on or after that date (section 10(2)]
[Section 10(1)(qA) inserted by section 16(1)(i) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017) - effective 1 March 2018]
| (r) | any gratuity (other than a leave gratuity) received by or accrued to any person from public funds upon his retirement from any office or employment under the Government, including the Railway Administration and any provincial administration, or from the funds of the Land and Agricultural Bank of South Africa upon his retirement as a member of the board of the said Bank, which the Treasury declares to be free of tax; |
[Section 10(1)(r) substituted by section 8(b) of the Income Tax Act, 1968 (Act No. 76 of 1968)]
| (s) | any amount by which the employees’ tax as defined in section 1 of the Employment Tax Incentive Act, 2013, payable by an employer as contemplated in section 3 of that Act is reduced in terms of section 2(2) of that Act or paid in terms of section 10 of that Act; [added by the Employment Tax Incentive Act, 2013]; |
[Section 10(1)(s) substituted by section 13, Schedule 1, of the Employment Tax Incentive Act, 2013 (Act No. 26 of 2013) - effective 1 January 2014)]
| (t) | the receipts and accruals— |
| (i) | of the Council for Scientific and Industrial Research; |
| (ii) | of the South African Inventions Development Corporation; |
| (iii) | of the South African National Roads Agency Limited incorporated in terms of section 3 of the South African National Roads Agency Limited and National Roads Act, 1998 (Act No. 7 of 1998); |
[Section 10(1)(t)(iii) inserted by section 26(1)(l) of the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003)]
| (iv) | [Section 10(1)(t)(iv) deleted by section 10(g) of the Income Tax Act, 1997 (Act No. 28 of 1997) - effective 1 July 1998] |
| (v) | of the Armaments Corporation of South Africa Limited, contemplated in section 2(1) of the Armaments Corporation of South Africa, Limited Act, 2003 (Act No. 51 of 2003); |
[Section 10(1)(t)(v)substituted by section 23(1)(u) of the Taxation Laws Amendment Act, 2003 (Act No. 31 of 2013)]
| (vi) | of any company during any period during which all the issued shares of such company are held by the Corporation referred to in subparagraph (v), if the operations of such company are conducted in pursuance of, or are ancillary or complementary to, the objects of the said Corporation; |
[Section 10(1)(t)(vi)substituted by section 10(1)(q) of the Income Tax Act, 1992 (Act No. 141 of 1992)]
| (vii) | of any traditional council or traditional community established or recognized or deemed to have been established or recognized in terms of the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003), or any tribe as defined in section 1 of that Act; |
[Section 10(1)(t)(vii)substituted by section 10(1)(i) of the Taxation Laws Amendment Act, 2007 (Act No. 8 of 2007)]
| (viii) | [Section 10(1)(t)(viii) deleted by section 14(1)(j) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014)]; |
| (ix) | of any water services provider; |
[Section 10(1)(t)(ix) inserted by section 10(1)(p) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]
| (x) | of the Development Bank of Southern Africa established on 23 June 1983; |
[Section 10(1)(t)(x) substituted by section 28(1)(q) of the Revenue Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 April 2012]
| (xi) | [Section 10(1)(t)(xi) deleted by section 18(1)(i) of the Revenue Laws Amendment Act, 1999 (Act No. 53 of 1999) - effective 1 September 2002 (Proclamation R. 16, GG 24967, dated 7 March 2003]; |
| (xii) | [Section 10(1)(t)(xii) deleted by section 21(1)(k) of the Taxation Laws Amendment Act, 2000 (Act No. 30 of 2000)]; |
| (xiii) | [Section 10(1)(t)(xiii) deleted by section 9(1)(f) of the Income Tax Act, 1994 (Act No. 21 of 1994)] |
| (xiv) | [Section 10(1)(t)(xiv) deleted by section 8(1)(o) of the Income Tax Act, 1996 (Act No. 36 of 1996)]; |
| (xv) | [Section 10(1)(t)(xv) deleted by section 18(1)(h) of the Revenue Laws Amendment Act, 2002 (Act No. 74 of 2002)]]; |
| (aa) | the compensation fund established by section 15 of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993); |
| (bb) | the reserve fund established by section 19 of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993); and |
| (cc) | a mutual association licensed in terms of section 30 of the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No. 130 of 1993), to carry on the business of insurance of employers against their liabilities to employees, if the compensation paid by the mutual association is identical to compensation that would have been payable in similar circumstances in terms of that Act; |
[Section 10(1)(t)(xvi) substituted by section 23(1)(h) of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016) - effective 1 April 2016]
| (xvii) | of the National Housing Finance Corporation established in 1996 by the National Department of Human Settlements; and |
| (xviii) | of the Corporation for Deposit Insurance established in terms of section 166AE of the Financial Sector Regulation Act: |
[Section 10(1)(t)(xviii) inserted by section 9(1)(c) of the Taxation Laws Amendment Act, 2023 (Act No. 17 of 2023), Notice No. 4226, GG49894, dated 22 December 2023 - comes into operation on 1 April 2024 and applies in respect of years of assessment ending on or after that date (section 9(2))]
Provided that any entity contemplated in this paragraph must comply with such reporting requirements as the Commissioner may determine;
[Section 10(1)(t) substituted by section 8(c) of the Income Tax, 1968 (Act No. 76 of 1968) - effective 6 August 1964]
| (tA) | [Section 10(1)(tA) deleted by section 16(n) of the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007)]; |
| (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; or |
| (ii) | [Section 10(1)(u)(ii) deleted by section 13 of Taxation Laws Amendment Act No. 17 of 2009]; |
| (v) | [Section 10(1)(v) deleted by section 10(1)(s) of the Income Tax Act, 1992 (Act No. 141 of 1992)]; |
| (vA) | [Section 10(1)(vA) deleted by section 10(1)(s) of the Income Tax Act, 1992 (Act No. 141 of 1992)] |
| (w) | [Section 10(1)(w) deleted by section 29(1)(e) of the Taxation Laws Amendment Act, 1998 (Act No. 30 of 1998)]; |
| (x) | [Section 10(1)(x) deleted by section 18(1)(w) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010) - effective 1 March 2011]; |
| (y) | any government grant or government scrapping payment received or accrued in terms of any programme or scheme which has been approved in terms of the national annual budget process and has been identified by the Minister by notice in the Gazette with effect from a date specified by the Minister in that notice (including any date that precedes the date of such notice) for purposes of this paragraph, having regard to— |
| (i) | whether the programme or scheme meets government policy priorities and objectives with respect to— |
| (aa) | the encouragement of economic growth and investment ; |
| (bb) | the promotion of employment creation; |
| (cc) | the development of public infrastructure and transport; |
| (dd) | the promotion of public health; |
| (ee) | the development of innovation and technology; |
| (ff) | the provision of housing and basic services; or |
| (gg) | the provision of relief in the case of natural disasters; |
| (ii) | the extent to which the programme or scheme will support the policy priorities and objectives contemplated in subparagraph (i); |
| (iii) | the financial implications for government should government grants or government scrapping payments in terms of that programme or scheme be exempt from tax; and |
| (iv) | whether the tax implications were taken into account in determining the appropriation or payment in respect of that programme or scheme; |
[Section 10(1)(y) inserted by section 16(1)(i) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - deemed to have come into operation on 1 January 2013]
| (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 |
[Section 10(1)(yA)(aa) substituted by section 16(1)(j) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]
| (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; |
[Section 10(1)(yA)(bb) substituted by section 10(e) of the Taxation Laws Amendment Act, 2020 (Act No. 23 of 2020), GG44083, dated 20 January 2021 - deemed to have come into operation on 1 January 2007 and applies in respect of years of assessment commencing on or after that date (section 10(4)]
| (cc) | [Section 10(1)(yA)(cc) deleted by section 16(1)(k) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017)]. |
[Section 10(1)(yA) substituted by section 22(1)(d) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019]
| (z) | [Section 10(1)(z) deleted by section 16(1)(e) of the Revenue Laws Amendment Act , 2008 (Act No. 60 of 2008)]; |
| (zA) | [Section 10(1)(zA) deleted by section 19(1)(m) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2013]; |
| (zB) | [Section 10(1)(zB) deleted by section 10(1)(j) of the Taxation Laws Amendment Act, 2007 (Act No. 8 of 2007)]; |
| (zC) | [Section 10(1)(zC) deleted by section 16(1)(k) of the Revenue Laws Amendment Act, 2005 (Act No. 31 of 2005)]; |
| (zD) | [Section 10(1)(zD) deleted by section 10(1)(zD) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008)]; |
| (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)(zE) inserted by section 9(1)(g) of the Income Tax Act, 1983 (Act No. 94 of 1983)]
| (zF) | [Section 10(1)(zF) deleted by section 18(1)(j) of the Revenue Laws Amendment Act, 2002 (Act No. 74 of 2002)]; |
| (zG) | [Section 10(1)(zG) deleted by section 28(1)(s) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 January 2012]; |
| (zH) | [Section 10(1)(zH) deleted by section 19(1)(m) of the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 January 2013]; |
| (zI) | [Section 10(1)(zI) deleted by section 16(1)(j) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 January 2016] |
| (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 |
[Section 10(1)(zJ)(i) substituted by section 18(1)(y) of the Taxation Laws Amendment Act, 2010 (Act No. 7 of 2010)]
| (ii) | remuneration as defined in the Fourth Schedule. |
[Section 10(1)(zJ)(ii) inserted by section 16(1)(g) of the Revenue Laws Amendment Act, 2008 (Act No. 60 of 2008) - effective 1 March 2009]
| (zK) | any amount received by or accrued to or in favour of a small, medium or micro-sized enterprise from a small business funding entity; |
[Section 10(1)(zK) inserted by section 14(1)(l) of the Taxation Laws Amendment Act, 2014 (Act No. 43 of 2014) - effective 1 March 2015]]
| (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. |
[Section 10(1)(zL) inserted by section 21(1)(e) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019 - effective 1 April 2019]
| (2) | Notwithstanding the exemptions provided for in paragraphs (h) and (k) of subsection (1)— |
| (a) | [Section 10(2)(a) deleted by section 2(1) of the Taxation Laws Second Amendment Act, 2008 (Act No. 4 of 2008)]; |
| (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. |
[Section 10(3) substituted by section 26(1)(o) of the Revenue Laws Amendment Act, 2003 (Act No. 45 of 2003)]
(4) [Section 10(4) deleted by section 8(1)(p) of the Income Tax Act, 1996 (Act No. 36 of 1996)]
(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 No. 57 of 1988), section 25A of the Nonprofit Organisations Act, 1997 (Act No. 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. |
[Section 10(5) inserted by section 3 of the Tax Administration Laws Amendment Act, 2023, GG49947, dated 22 December 2023]
