South Africa
Income Tax Act, 1962
Act 58 of 1962
- Published in Government Gazette 250 on 29 May 1962
- Assented to on 25 May 1962
- Commenced on 1 July 1962
- [This is the version of this document as it was from 29 July 2022 to 31 December 2022.]
- [Amended by Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2018 (Act 21 of 2018) on 17 January 2019]
- [Amended by Tax Administration Laws Amendment Act, 2018 (Act 22 of 2018) on 17 January 2019]
- [Amended by Taxation Laws Amendment Act, 2018 (Act 23 of 2018) on 17 January 2019]
- [Amended by Taxation Laws Amendment Act, 2022 (Act 20 of 2022) on 17 January 2019]
- [Amended by Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2019 (Act 32 of 2019) on 15 January 2020]
- [Amended by Tax Administration Laws Amendment Act, 2019 (Act 33 of 2019) on 15 January 2020]
- [Amended by Taxation Laws Amendment Act, 2019 (Act 34 of 2019) on 15 January 2020]
- [Amended by Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2020 (Act 22 of 2020) on 20 January 2021]
- [Amended by Taxation Laws Amendment Act, 2020 (Act 23 of 2020) on 20 January 2021]
- [Amended by Tax Administration Laws Amendment Act, 2020 (Act 24 of 2020) on 20 January 2021]
- [Amended by Taxation Laws Amendment Act, 2019 (Act 34 of 2019) on 1 March 2021]
- [Amended by Taxation Laws Amendment Act, 2022 (Act 20 of 2022) on 1 March 2021]
- [Amended by Taxation Laws Amendment Act, 2023 (Act 17 of 2023) on 1 March 2021]
- [Amended by Taxation Laws Amendment Act, 2023 (Act 17 of 2023) on 1 April 2021]
- [Amended by Taxation Laws Amendment Act, 2022 (Act 20 of 2022) on 1 January 2022]
- [Amended by Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2021 (Act 19 of 2021) on 19 January 2022]
- [Amended by Taxation Laws Amendment Act, 2021 (Act 20 of 2021) on 19 January 2022]
- [Amended by Tax Administration Laws Amendment Act, 2021 (Act 21 of 2021) on 19 January 2022]
- [Amended by Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2022 (Act 19 of 2022) on 1 March 2022]
- [Amended by Taxation Laws Amendment Act, 2023 (Act 17 of 2023) on 1 March 2022]
- [Amended by Taxation Laws Amendment Act, 2022 (Act 20 of 2022) on 29 July 2022]
Preliminary
1. Interpretation
Chapter I
Administration
2. Administration of Act
3. Exercise of powers and performance of duties
4A. Exercise of powers and performance of duties by Minister
The powers conferred and the duties imposed upon the Minister by or under the provisions of this Act may be exercised or performed by the Minister personally or, except for the power to issue notices or regulations, delegated by the Minister to the Director-General of the National Treasury and the Director-General may in turn delegate the powers and duties so delegated to him or her to any officer or person under his or her control, direction or supervision.Chapter II
The taxes
Part I – Normal tax
5. Levy of normal tax and rates thereof
6. Normal tax rebates
6A. Medical scheme fees tax credit
6B. Additional medical expenses tax credit
6quat. Rebate or deduction in respect of foreign taxes on income
6quin. Rebate in respect of foreign taxes on income from source within Republic
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
[heading substituted by section 4 of Act 34 of 2019; effective date 15 January 2020, date of promulgation of that Act]7D. Calculation of amount of interest
Where it must be determined, for the purposes of this Act, what amount would have accrued or been incurred as interest in respect of any loan, debt, advance or amount of credit provided to a person or an amount owed by a person had that interest accrued or been incurred at a specific rate of interest, that amount must be determined—7E. Time of accrual of interest payable by SARS
In determining the taxable income derived by any person during a year of assessment, any amount of interest to which a person becomes entitled that is payable by SARS in terms of a tax Act is deemed to accrue to that person on the date on which that amount is paid to that person.7F. Deduction of interest repaid to SARS
In determining the taxable income derived by any person during a year of assessment, any amount of interest paid by SARS to that person under a tax Act and deemed to have accrued to that person in terms of section 7E that has to be repaid by that person to SARS, to the extent that the amount of interest is or was included in the taxable income of that person, must be deducted from that person’s income in the year of assessment during which that amount is repaid to SARS.[section 7F inserted by section 11(1) of Act 23 of 2018; effective date 1 March 2018, applicable to amounts of interest repaid to SARS on or after that date, and substituted by section 5 of Act 34 of 2019; effective date 15 January 2020, date of promulgation of that Act]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 thereof
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
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
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
10. Exemptions
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
[heading substituted by section 14(1)(a) of Act 34 of 2019; effective date 1 March 2020, applicable in respect of any contributions made to a provident or provident preservation fund in determining the taxable annuity received during any year of assessment from such fund in relation to annuities received on or after 1 March 2020]11. General deductions allowed in determination of taxable income
For the purpose of determining the taxable income derived by any person from carrying on any trade, there shall be allowed as deductions from the income of such person so derived—11A. Deductions in respect of expenditure and losses incurred prior to commencement of trade
11D. Deductions in respect of scientific or technological research and development
11E. Deduction of certain expenditure incurred by sporting bodies
For the purpose of determining the taxable income derived by—11F. Deduction in respect of contributions to retirement funds
11sex. Deduction of compensation for railway operating losses
For the purpose of determining the taxable income derived by any taxpayer from carrying on any trade within the Republic, there shall be allowed as a deduction from the income of the taxpayer so derived the amount of any compensation due to Transnet Limited and paid by the taxpayer (whether directly or through any trade association of which the taxpayer is a member) in respect of any loss incurred by Transnet Limited in operating any railway line, if—12B. Deduction in respect of certain machinery, plant, implements, utensils and articles used in farming or 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
[heading substituted by section 27(a) of Act 23 of 2018; effective date 17 January 2019, date of promulgation of that Act]12D. Deduction in respect of certain pipelines, transmission lines and railway lines
12DA. Deduction in respect of rolling stock
12E. Deductions in respect of small business corporations
12F. Deduction in respect of airport and port assets
12H. Additional deduction 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. ***
[section 12K repealed by section 18(1) of Act 34 of 2019; effective date 1 June 2019]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 renewable energy
13. Deductions in respect of buildings used in a process of manufacture
13bis. Deductions in respect of buildings used by hotel keepers
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
15. Deductions from income derived from mining operations
There shall be allowed to be deducted from the income derived by the taxpayer from mining operations—15A. Amounts to be taken into account in respect of trading stock derived from mining operations
For the purposes of section 22, trading stock related to mining operations—17A. Expenditure incurred by a lessor of land let for farming purposes, in respect of soil erosion works
18A. Deduction of donations to certain organisations
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 and royalties incurred by headquarter companies
21. Deduction of alimony, allowance or maintenance
The taxpayer shall have his taxable income reduced by so much of any amount payable by him to or on behalf of his spouse or former spouse under any order of divorce or judicial separation granted in consequence of proceedings instituted not later than the twenty-first day of March, 1962, or under any written agreement of separation entered into not later than that date, by way of alimony or allowance or maintenance of his spouse or former spouse and any children, as the Commissioner is satisfied has been or will in respect of the year or period of assessment in question be paid out of the taxable income of the taxpayer: Provided that for the purposes of this section any order of divorce or judicial separation (hereinafter referred to as the subsequent order) which in effect supersedes any such first-mentioned order of judicial separation or written agreement of separation and does not vary the amount of alimony, allowance or maintenance payable thereunder, shall not affect the rights which any person may have under this section, and in the case of any such person and the spouse or former spouse of such person the subsequent order shall, for the purposes of this section and the provisions of section 10(1)(u), be deemed to have been granted in consequence of proceedings instituted on or before the said date.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
No deductions shall in any case be made in respect of the following matters, namely—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
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
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 is or company shares are exchanged for shares
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. 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
Where during any period of assessment any taxpayer who is married in community of property has lived apart from his or her spouse in circumstances whichindicate that the separation is likely to be permanent, his or her taxable income for such period shall be determined atthe amount at which such taxpayer’s taxable income would have been determined under the provisions of this Act if such taxpayer had not been married in community of property.25B. Taxation of trusts and beneficiaries of trusts
[heading substituted by section 28(a) of Act 23 of 2020; effective date 20 January 2021, date of promulgation of that Act]25BA. Amounts received by or accrued to certain portfolios of collective investment schemes and holders of participatory interests in portfolios
25BB. Taxation of REITs
25C. Income of insolvent estates
For the purposes of this Act, and subject to any such adjustments as may be necessary the estate of a person prior to sequestration and that person’s insolvent estate shall be deemed to be one and the same person for purposes of determining—25D. Determination of taxable income in foreign currency
26. Determination of taxable income derived from farming
26A. Inclusion of taxable capital gain in taxable income
There shall be included in the taxable income of a person for a year of assessment the taxable capital gain of that person for that year of assessment, as determined in terms of the Eighth Schedule.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
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. Taxable income in respect of international transactions to be based on arm’s length principle
33. Assessment of owners or charterers of ships or aircraft who are not residents of the Republic
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 of 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
37F. Determination of taxable income derived by persons previously assessable under certain other laws
Where it is necessary for any rule provided in this Act as to the inclusion in the income of any taxpayer for any year or as to the deduction or set-off of any amount from or against his income for such year, that regard shall be had to anything that has been done or has occurred in or in relation to a previous year of assessment, anything that has in fact been done or has in fact occurred in or in relation to a year of assessment during which the taxpayer was assessable for taxation purposes in terms of any law of a former self-governing territory declared under section 26 of the repealed Self-governing Territories Constitution Act, 1971 (Act No. 21 of 1971), to be a self-governing territory or of the former Republic of Transkei, Bophuthatswana, Venda or Ciskei for any year of assessment, shall, subject to such adjustments as may in the circumstances be appropriate, for the purposes of applying such rule be taken into account.37G. Determination of taxable income derived from small business undertakings
The Minister of Finance may make regulations to facilitate compliance with the provisions of this Act by natural persons who carry on business through small business undertakings, whether as sole proprietors or in partnership with other natural persons.Part II – Special provisions relating to companies
38. Classification of companies
39. Redetermination of company’s status
If owing to changes in the constitution or shareholding of any company which has been recognized as a public company under paragraph (a), (b) or (c) of subsection (2) of section thirty-eight, or for any other reason, the Commissioner is no longer satisfied of the matters of which he is in terms of the applicable paragraph required to be satisfied, or the company ceases to comply with the requirements of that paragraph, the Commissioner may notify the public officer of the company that it will as from the next succeeding specified date be recognized as a private company.40A. Close corporations
40B. Conversion of co-operative to company
Where any co-operative is incorporated as a company in accordance with the provisions of section 161A or 161C of the Co-operatives Act, 1981 (Act No. 91 of 1981) or section 62 of the Co-operatives Act, 2005 (Act No. 14 of 2005), such co-operative and such company shall for purposes of this Act be deemed to be and to have been one and the same company.40C. Issue of shares or granting of options or rights for no consideration
Where a company issues a share or grants an option or other right in respect of the issue of a share to a person for no consideration, the expenditure actually incurred by the person to acquire that share, option or right must be deemed to be nil.40CA. Acquisitions of assets in exchange for shares
Where a company acquires any asset, as defined in paragraph 1 of the Eighth Schedule—40D. Communications licence conversions
40E. Ceasing to be controlled foreign company
Where a controlled foreign company ceases to be a controlled foreign company during any foreign tax year of that controlled foreign company prior to 5 June 2015 solely by reason of the coming into operation of the Taxation Laws Amendment Act, 2015, section 9H (3)(b) must not apply.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
41. General
42. Asset-for-share transactions
43. Substitutive share-for-share transactions
44. Amalgamation transactions
45. Intra-group transactions
46. Unbundling transactions
46A. Limitation of expenditure incurred in respect of shares held in an unbundling company
47. Transactions relating to liquidation, winding-up and deregistration
Part IIIA – Taxation of foreign entertainers and sportspersons
47A. Definitions
For purposes of this Part—47B. Imposition of tax
47C. Liability for payment of tax
47D. Withholding of amounts of tax
47E. Payment of amounts of tax deducted or withheld
47F. Submission of return
47G. Personal liability of resident
47J. Currency of payments made to Commissioner
If an amount deducted or withheld by a resident in terms of section 47D is denominated in any currency other than the currency of the Republic, the amount so deducted or withheld and paid to the Commissioner must be translated to the currency of the Republic at the spot rate on the date on which that amount was so deducted or withheld.47K. Notification of specified activity
Any resident who is primarily responsible for founding, organising, or facilitating a specified activity in the Republic and who will be rewarded directly or indirectly for that function of founding, organising or facilitating must, in the manner and form prescribed by the Commissioner—Part IV – Turnover tax payable by micro businesses
48. Definitions
For purposes of this Part, unless the context otherwise indicates, any word or expression that has been defined in section 1 shall bear the meaning so defined and any word or expression that has been defined in the Sixth Schedule shall bear the meaning so defined.48A. Imposition of tax
There must be levied and paid for the benefit of the National Revenue Fund a tax, to be known as the turnover tax, payable by a person that was a registered micro business during a year of assessment, in respect of its taxable turnover for that year of assessment.48B. Rates
48C. Transitional provisions
Part IVA – Withholding tax on royalties
49A. Definitions
In this Part—“foreign person” means any person that is not a resident;“royalty” means any amount that is received or accrues in respect of—(a)the use or right of use of or permission to use any intellectual property as defined in section 23I; or(b)the imparting of or the undertaking to impart any scientific, technical, industrial or commercial knowledge or information, or the rendering of or the undertaking to render any assistance or service in connection with the application or utilisation of such knowledge or information.49B. Levy of withholding tax on royalties
49C. Liability for tax
49D. Exemption from withholding tax on royalties
A foreign person is exempt from the withholding tax on royalties if—49E. Withholding of withholding tax on royalties by payers of royalties
49F. Payment and recovery of tax
49G. Refund of withholding tax on royalties
Notwithstanding Chapter 13 of the Tax Administration Act, if—49H. Currency of payments made to Commissioner
If an amount withheld by a person in terms of section 49E(1) is denominated in any currency other than the currency of the Republic, the amount so withheld must, for the purposes of determining the amount to be paid to the Commissioner in terms of section 49F(2), be translated to the currency of the Republic at the spot rate on the date on which the amount was so withheld.Part IVB – Withholding tax on interest
50A. Definitions
In this Part—“bank” means any—(a)any bank or branch as defined in section 1 of the Banks Act respectively;(b)mutual bank as defined in section 1 of the Mutual Banks Act, 1993 (Act No. 124 of 1993); or(c)co-operative bank as defined in section 1 of the Co-operative Banks Act, 2007 (Act No. 40 of 2007);“Development Bank of Southern Africa” means the Development Bank of Southern Africa Limited, incorporated in terms of the Development Bank of Southern Africa Act, 1997 (Act No. 13 of 1997);“foreign person” means any person that is not a resident;“Industrial Development Corporation” means the Industrial Development Corporation of South Africa Limited, registered in terms of the Industrial Development Corporation Act, 1940 (Act No. 22 of 1940);“interest” means interest as contemplated in paragraph (a) or (b) of the definition of “interest” in section 24J(1), but does not include an amount of interest that is deemed to be a dividend in specie in terms of section 8F(2) or 8FA(2);[definition of “interest” substituted by section 31(1)(b) of Act 20 of 2021; effective date 1 January 2022, applicable in respect of amounts paid on or after that date]“listed debt” means any debt that is listed on a recognised exchange as defined in paragraph 1 of the Eighth Schedule.[section 50A amended by section 31(1)(a) of Act 20 of 2021; effective date 19 January 2022, date of promulgation of that Act]50B. Levy of withholding tax on interest
50C. Liability for tax
50D. Exemption from withholding tax on interest
50E. Withholding of withholding tax on interest by payers of interest
50F. Payment and recovery of tax
50G. Refund of withholding tax on interest
50H. Currency of payments made to Commissioner
If an amount withheld by a person in terms of section 50E(1) is denominated in any currency other than the currency of the Republic, the amount so withheld must, for the purposes of determining the amount to be paid to the Commissioner in terms of section 50F(2), be translated to the currency of the Republic at the spot rate on the date on which the amount was so withheld.Part V – Donations tax
54. Levy of donations tax
Subject to the provisions of section 56, there shall be paid for the benefit of the National Revenue Fund a tax (in this Act referred to as donations tax) on the value of any property disposed of (whether directly or indirectly and whether in trust or not) under any donation by any resident (in this Part referred to as the donor).55. Definitions for purposes of this Part
56. Exemptions
57. Donations by a body corporate at the instance of any person
57A. Donations by spouses married in community of property
For the purposes of this Part, in the case of spouses married in community of property, where any property is disposed of in terms of a donation by one of the spouses and—57B. Disposal of the right to receive an asset which would otherwise have been acquired in consequence of services rendered or to be rendered
58. Property disposed of under certain transactions deemed to have been disposed of under a donation
59. Persons liable for the tax
The person liable for donations tax shall be the donor: Provided that if the donor fails to pay the tax within the period prescribed in subsection (1) of section sixty the donor and the donee shall be jointly and severally liable for the tax.60. Payment and assessment of the tax
61. Extension of scope of certain provisions of Act for purposes of donations tax
For the purposes of the donations tax—62. Value of property disposed of under donations
64. Rate of donations tax
Part VIII – Dividends tax
64D. Definitions
In this Part—“beneficial owner” means the person entitled to the benefit of the dividend attaching to a share;“dividend” means any dividend or foreign dividend as defined in section 1, including any amount contemplated in section 31(3)(i), that is—(a)paid by a company that is a resident; or(b)paid by a foreign company—(i)if the share in respect of which that foreign dividend is paid is a listed share; and(ii)to the extent that that foreign dividend does not consist of a distribution of an asset in specie;[words preceding paragraph (a) substituted by section 60(1)(a) of Act 23 of 2018; effective date 1 January 2019, and by section 36(1) of Act 23 of 2020; effective date 17 January 2019]“dividend cycle” [definition of “dividend cycle” deleted by section 60(1)(b) of Act 23 of 2018; effective date 17 January 2019, date of promulgation of that Act];“effective date” means the date on which this Part comes into operation;“regulated intermediary” means any—(a)central securities depository participant contemplated in section 32 of the Financial Markets Act;(b)authorised user as defined in section 1 of the Financial Markets Act;(c)approved nominee contemplated in section 76(3) of the Financial Markets Act;(d)nominee that holds investments on behalf of clients as contemplated in section 9.1 of Chapter 1 and section 8 of Chapter II of the Codes of Conduct for Administrative and Discretionary Financial Service Providers, 2003 (Board Notice 79 of 2003) published in Government Gazette No. 25299 of 8 August 2003;(e)portfolio of a collective investment scheme in securities;(f)transfer secretary that is a person other than a natural person and that has been approved by the Commissioner subject to such conditions and requirements as may be determined by the Commissioner; or(g)a portfolio of a hedge fund collective investment scheme.“STC credit” [definition of “STC credit” deleted by section 60(1)(b) of Act 23 of 2018; effective date 17 January 2019, date of promulgation of that Act]64E. Levy of tax
64EA. Liability for tax
Any—[words preceding paragraph (a) substituted by section 44 of Act 34 of 2019; effective date 15 January 2020, date of promulgation of that Act]64EB. Deemed beneficial owners of dividends
64F. Exemption from tax in respect of dividends other than dividends comprising distribution of assets in specie
[heading substituted by section 62(a) of Act 23 of 2018; effective date 17 January 2019, date of promulgation of that Act]64FA. Exemption from and reduction of tax in respect of dividends in specie
64G. Withholding of dividends tax by companies declaring and paying dividends
64H. Withholding of dividends tax by regulated intermediaries
64I. Withholding of dividends tax by insurers
If a dividend, to the extent that the dividend does not consist of a distribution of an asset in specie, is paid to an insurer as defined in section 29A, the insurer must be deemed to be a regulated intermediary and the dividend must, to the extent that the dividend is allocated to a fund contemplated in section 29A(4)(b), be deemed to be paid to a natural person that is a resident by the regulated intermediary on the date that the dividend is paid to the insurer.64J. ***
[section 64J repealed by section 63 of Act 23 of 2018; effective date 17 January 2019, date of promulgation of that Act]64K. Payment and recovery of tax
64L. Refund of tax in respect of dividends declared and paid by companies
64LA. Refund of tax in respect of dividends in specie
Notwithstanding the provisions of Chapter 13 of the Tax Administration Act, if—64M. Refund of tax in respect of dividends paid by regulated intermediaries
64N. Rebate in respect of foreign taxes on dividends
Chapter III
General provisions
Part I – Returns
66. Notice by Commissioner requiring returns for assessment of normal tax under this Act
67. Registration as taxpayer
68. Income and capital gain of married persons and minor children
72A. Return relating to controlled foreign company
Part IIA
80A. Impermissible tax avoidance arrangements
An avoidance arrangement is an impermissible avoidance arrangement if its sole or main purpose was to obtain a tax benefit and—80B. Tax consequences of impermissible tax avoidance
80C. Lack of commercial substance
80D. Round trip financing
80E. Accommodating or tax-indifferent parties
80F. Treatment of connected persons and accommodating or tax-indifferent parties
For the purposes of applying section 80C or determining whether or not a tax benefit exists for purposes of this Part, the Commissioner may—80G. Presumption of purpose
80H. Application to steps in or parts of an arrangement
The Commissioner may apply the provisions of this Part to steps in or parts of an arrangement.80I. Use in the alternative
The Commissioner may apply the provisions of this Part in the alternative for or in addition to any other basis for raising an assessment.80J. Notice
80L. Definitions
For purposes of this Part—“arrangement” means any transaction, operation, scheme, agreement or understanding (whether enforceable or not), including all steps therein or parts thereof, and includes any of the foregoing involving the alienation of property;“avoidance arrangement” means any arrangement that, but for this Part, results in a tax benefit;“impermissible avoidance arrangement” means any avoidance arrangement described in section 80A;“party” means any—(a)person;(b)permanent establishment in the Republic of a person who is not a resident;(c)permanent establishment outside the Republic of a person who is a resident;(d)partnership; or(e)joint venture,who participates or takes part in an arrangement;“tax” includes any tax, levy or duty imposed by this Act or any other Act administered by the Commissioner;89quat. ***
Part IV – Payment and recovery of tax
90. Persons by whom normal tax payable
Subject to the provisions of this Act and the Tax Administration Act, any normal tax is payable by the person by whom any taxable income is received or to whom or in whose favour it accrues or who is legally entitled to the receipt thereof:Provided that any person may recover so much of the taxation paid by him under this Act as is due to the inclusion in—91. Recovery of tax
Part VI – Miscellaneous
102. Refunds
103. Transactions, operations or schemes for purposes of avoiding or postponing liability for or reducing amounts of taxes on income
107. Regulations
108. Prevention of or relief from double taxation
111. Repeal of laws
112. Short title and commencement
This Act shall be called the Income Tax Act, 1962, and shall come into operation on the first day of July, 1962.History of this document
01 March 2025 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2023
01 January 2025 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2023
01 April 2024 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2023
01 March 2024 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2023
01 January 2024 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2013
Amended by
Taxation Laws Amendment Act, 2023
22 December 2023 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2023
Amended by
Tax Administration Laws Amendment Act, 2023
01 November 2023 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2023
31 March 2023 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2021
Amended by
Taxation Laws Amendment Act, 2022
Amended by
Taxation Laws Amendment Act, 2023
01 March 2023 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2022
Amended by
Taxation Laws Amendment Act, 2023
05 January 2023 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2019
Amended by
Tax Administration Laws Amendment Act, 2022
Amended by
Taxation Laws Amendment Act, 2022
01 January 2023 amendment not yet applied
Amended by
Taxation Laws Amendment Act, 2013
Amended by
Taxation Laws Amendment Act, 2019
Amended by
Taxation Laws Amendment Act, 2021
Amended by
Taxation Laws Amendment Act, 2022
Amended by
Taxation Laws Amendment Act, 2023
29 July 2022 this version
Amended by
Taxation Laws Amendment Act, 2022
01 March 2022
19 January 2022
01 January 2022
Amended by
Taxation Laws Amendment Act, 2022
01 April 2021
Amended by
Taxation Laws Amendment Act, 2023
Consolidation
01 March 2021
Amended by
Taxation Laws Amendment Act, 2019
Amended by
Taxation Laws Amendment Act, 2022
Amended by
Taxation Laws Amendment Act, 2023
20 January 2021
01 April 2020
Consolidation
15 January 2020
01 April 2019
Consolidation
17 January 2019
Amended by
Tax Administration Laws Amendment Act, 2018
Amended by
Taxation Laws Amendment Act, 2018
Amended by
Taxation Laws Amendment Act, 2022
01 April 2018
Consolidation
01 July 1962
Commenced
29 May 1962
25 May 1962
Assented to
Subsidiary legislation
Title | Numbered title |
---|---|
Daily Amount: meals and incidental costs (section 8(1)(a)(ii) of the Act), 2024 | Government Notice 4457 of 2024 |
Daily Amount: meals and incidental costs (section 8(1)(a)(ii)(aa) of the Act), 2023 | Government Notice 3113 of 2023 |
Daily Amount: meals and incidental costs (section 8(1)(c)(ii) of the Act), 2024 | Government Notice 4458 of 2024 |
Rate per kilometre: motor vehicles (section 8(1)(b)(ii) and (iii) of the Act), 2023 | Government Notice 3112 of 2023 |
Rate per kilometre: motor vehicles (section 8(1)(b)(ii) and (iii) of the Act), 2024 | Government Notice 4456 of 2024 |