Part I : Normal Tax

Purchase

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5. Levy of normal tax and rates thereof

6. Normal tax rebates

6A. Medical scheme fees tax credit

6B. Additional medical expenses tax credit

6C. Solar energy tax credit

6bis. [Repealed]

6ter. [Repealed]

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

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

6sex. [Repealed] Rebate in respect of dividends tax on income of foreign companies

7. When income is deemed to have accrued or to have been received

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

7B. Timing of accrual and incurral of variable remuneration

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

7D. Calculation of amount of interest

7E. Time of accrual of interest payable by SARS

7F. Deduction of interest repaid to SARS

8. Certain amounts to be included in income or taxable income

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

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

8C. Taxation of directors and employees on vesting of equity instruments

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

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

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

8FA. Hybrid interest deemed to be dividends in specie

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

9. Source of income

9A. Blocked foreign funds

9B. [Repealed] Circumstances in which certain amounts received or accrued in relation to disposal of listed shares are deemed to be of capital nature

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

9D. Net income of controlled foreign companies

9E. [Repealed] Taxation of passive holding companies

9F. [Repealed] Income from foreign sources

9G. [Repealed] Taxable income in respect of foreign equity instruments

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

9HA. Disposal by deceased person

9HB. Transfer of asset between spouses

9I. Headquarter companies

9J. Interest of non-resident persons in immovable property

9K. Listing of security on exchange outside Republic

10A. Exemption of capital element of purchased annuities

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

10C. Exemption of non-deductible element of qualifying annuities

11. General deductions allowed in determination of taxable income

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

11B. [Repealed] Deductions in respect of research and development

11C. [Repealed] Deduction in respect of foreign dividends

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

11E. Deduction of certain expenditure incurred by sporting bodies

11F. Deduction in respect of contributions to retirement funds

11G. Deduction of expenses incurred in production of interest

11bis. [Repealed]

11ter. [Repealed]

11quat. [Repealed]

11quin. [Repealed]

11sex. Deduction of compensation for railway operating losses

11sept. [Repealed]

11oct. [Repealed]

12A. [Repealed]

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

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

12C. Deduction in respect of assets used by manufacturers or hotel keepers and in respect of aircraft and ships, and in respect of assets used for storage and packing of agricultural products

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

12DA. Deduction in respect of rolling stock

12E. Deduction in respect of certain plant and machinery of small business corporations

12F. Deduction in respect of airport and port assets

12G. [Repealed] Additional Industrial investment allowance in respect of industrial assets used for qualifying strategic industrial projects

12H. Additional deductions in respect of learnership agreements

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

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

12K. [Repealed]

12L. Deduction in respect of energy efficiency savings

12M. Deduction of medical lump sum payments

12N. Deductions in respect of improvements not owned by taxpayer

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

12O. Exemption in respect of films

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

12Q. Exemption of income in respect of ships used in international shipping

12R. Special economic zones

12S. Deduction in respect of buildings in special economic zones

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

12U. Additional deduction in respect of roads and fences in respect of production of renewal energy

13. Deductions in respect of buildings used in a process of manufacture

13bis. Deductions in respect of buildings used by hotelkeepers

13ter. Deductions in respect of residential buildings

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

13quin. Deduction in respect of commercial buildings

13sex. Deduction in respect of certain residential units

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

14. [Repealed] Deductions in respect of ships

14bis. [Repealed] Deductions in respect of aircraft

15. Deductions from income derived from mining operations

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

16A. [Repealed]

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

18. [Repealed] Deduction in respect of medical and dental expenses

18A. Deduction of donations to certain organisations

18B. [Repealed]

19. Concession or compromise in respect of a debt

20. Set-off of assessed losses

20A. Ring-fencing of assessed losses of certain trades

20B. Limitation of losses from disposal of certain assets

20C. Ring-fencing of interest incurred by headquarter companies

21. Deduction of alimony, allowance or maintenance

21bis. [Repealed]

21ter. [Repealed]

21quat. [Repealed]

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

22A. Schemes of arrangement involving trading stock

22B. Dividends treated as income on disposal of certain shares

23. Deductions not allowed in determination of taxable income

23A. Limitation of allowances granted to lessors of certain assets

23B. Prohibition of double deductions

23C. Reduction of cost or market value of certain assets

23D. Limitation of allowances granted in respect of certain assets

23E. [Repealed] Provisions relating to leave pay

23F. Acquisition or disposal of trading stock

23G. Sale and leaseback arrangements

23H. Limitation of certain deductions

23I. Prohibition of deductions in respect of certain intellectual property

23J. [Repealed] Limitation of allowances granted in respect of assets previously held by connected persons

23K. Limitation of deductions in respect of reorganisation and acquisition transactions

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

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

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

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

24. Credit agreements and debtors allowance

24A. Transactions whereby fixed property, etc. are exchanged for shares

24B. [Repealed] Transactions where shares are acquired by way of issue in exchange for shares issued

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

24C. Allowance in respect of future expenditure on contracts

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

24E. Allowance in respect of future expenditure by sporting bodies

24F. [Repealed] Allowance in respect of films

24G. Taxable income of toll road operators

24H. Persons carrying on trade or business in partnership

24I. Gains or losses on foreign exchange transactions

24J. Incurral and accrual of interest

24JA. Sharia compliant financing arrangements

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

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

24L. Incurral and accrual of amounts in respect of option contracts

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

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

24O. Incurral of interest in respect of certain debts deemed to be in the production of income

24P. Allowance in respect of future repairs to certain ships

25. Taxation of deceased estates

25A. Determination of taxable incomes of permanently separated spouses

25B. Taxation of trusts and beneficiaries of trusts

25BA. Amounts received by or accrued to certain portfolios

25BB. Taxation of REITs

25C. Income of insolvent estates

25D. Determination of taxable income in foreign currency

25E. Determination of contributed tax capital in foreign currency

26. Determination of taxable income derived from farming

26A. Inclusion of taxable capital gain in taxable income

26B. Taxation of oil and gas companies

27. Determination of taxable income of co-operative societies and companies

28. Taxation of short-term insurance business

28bis. [Repealed] Assessments on transfer of business undertaking by foreign company to South African subsidiary

29. [Repealed] Taxable income of companies carrying on long-term insurance business

29A. Taxation of long-term insurers

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

30. Public benefit organisations

30A. Recreational clubs

30B. Associations

30C. Small business funding entities

31. Tax payable in respect of international transactions to be based on arm’s length principle

31A. [Repealed] Disposals of assets by non-resident persons

32. [Repealed] Assessment in the case of submarine cable

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

35. [Repealed] Assessment of persons not ordinarily resident or registered, managed or controlled in the Republic who derive income from royalties or similar payments

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

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

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

37A. Closure rehabilitation company or trust

37B. Deductions in respect of environmental expenditure

37C. Deductions in respect of environmental conservation and maintenance

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

37E. [Repealed] Application of certain provisions where taxpayer carries on value-added process

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

37G. Determination of taxable income derived from small business undertakings

37H. [Repealed] Tax holiday scheme for certain companies