Page 101 - SAIT Compendium 2016 Volume2

PN 4/1999 Income Tax acT: PracTIce noTes PN 4/1999
ANNEXURE A
DETERMINATION OF THE TAXATION OF GAINS AND LOSSES ON FOREIGN EXCHANGE TRANSACTIONS
Did the gain or loss occur in respect of an exchange item as de ned in section 241(1)?
No
Yes
Determine the exchange difference
Does the exchange difference meet the requirements of section 241(2)?
Yes
No
Yes
Determine
the relevant portion of the exchange difference
Does the exchange difference meet the requirements of section 241(5)?
Does the exchange difference meet the requirements of section 241(7A)?
Does the exchange difference meet the requirements of section 241(7)?
No Yes
Include the exchange difference in income if a gain and deduct from income if a loss
No No
Include the exchange difference in income if a gain and deduct from income if a loss
Yes
Include 10% of deferred amount in income if a gain and deduct 10% of deferred amount from income if a loss
Use the other sections of the Act
SAIT CompendIum oF TAx LegISLATIon VoLume 2
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