Page 29 - SAIT Compendium 2016 Volume2

Para 12G(7)
regs INCOME TAX ACT: REGULATIONS ANd NOTICES Public Bene t
(ii) entails linkages throughout the value chain, from suppliers to end producers as well as support and specialised infrastructure;
(b) regulation 3.2(c), the value-added shall be determined in accordance with the formula— Gross Project Receipts – Material Inputs
Gross Project Receipts
where—
(i) ‘gross project receipts’ include all gross income other than income from investment and nance (such as
interest, dividends, sales of nancial instruments and currency transactions); and
(ii) ‘material inputs’ include the direct cost of all raw materials, intermediate products, energy and water used to
produce gross project receipts;
(c) regulation 3.3(a), a business will not qualify as a small, medium or micro enterprise where—
(i) more than 200 full-time employees are formally employed by that business; or (ii) the annual turnover of that business exceeds R50 million; and
(d) regulation 3.4, jobs created from indirect employment will be determined as jobs added due to the increased sale of goods and services directly acquired by the project.
REGULATIONS TO PRESCRIBE ADDITIONAL REQUIREMENTS IN
RESPECT OF PUBLIC BENEFIT ORGANISATIONS
Promulgated under
GN R1163 in GG 23816 of 6 September 2002
By virtue of the power vested in me by section 18A (1A) of the Income Tax Act, 1962, I, Trevor Andrew Manuel,
Minister of Finance, hereby prescribe in the Schedule hereto, the additional requirements with which any public bene t organisation which carries on any activity contemplated in paragraph 4 of Part II of the Ninth Schedule to that Act, must comply before a donation made to that public bene t organisation shall be allowed as a deduction under section 18A. T. A. MANUEL
Minister of Finance
SCHEDULE
1. In these Regulations, unless the context otherwise indicates, any word or expression to which a meaning has been assigned in the Income Tax Act, 1962, bears the meaning assigned thereto.
2. Any public bene t organisation carrying on the activity of establishing and managing a transfrontier conservation area, which—
(a) forms part of the Republic and one or more other countries;
(b) is or will fall under a uni ed or coordinated system of management without compromising national sovereignty; and (c) has been established with the explicit purpose of supporting the conservation of biological diversity, job creation,
free movement of animals and tourists across the international boundaries within the transfrontier conservation area,
and the building of peace and understanding between the nations concerned,
as contemplated in paragraph 4 of Part II of the Ninth Schedule to the Income Tax Act; 1962, must, in addition to any other requirement prescribed by section 18A of that Act, comply with the requirements contemplated in regulation 3, before any donation to that public bene t organisation shall be allowed as a deduction under that section.
3. The constitution or founding document of a public bene t organisation contemplated in regulation 2, must expressly provide that the organisation—
(a) may not issue any receipt contemplated in section 18A (2) of that Act in respect of any donation made by a person
to that public bene t organisation, unless—
(i) that donation is made by that person on or after 1 August 2002, but before 1 August 2005; and
(ii) that person has during the relevant year of assessment of that person donated an amount of at least R1 million to that organisation;
(b) must ensure that every donation contemplated in paragraph (a) in respect of which a receipt has been issued in terms of section 18A (2), will be matched by a donation to that organisation of the same amount by a person who is not a resident and which is made from funds generated and held outside the Republic; and
(c) must utilise the amount of—
(i) all donations contemplated in paragraph (a) in respect of which a receipt has been issued in terms of section
18A (2) and income derived therefrom, in the Republic in carrying on the activity contemplated in regulation
2; and
(ii) all donations contemplated in paragraph (b), either in the Republic in, carrying on the activity contemplated in
regulation 2, or on a transfrontier conservation area contemplated in regulation 2.
SAIT CompendIum oF TAx LegISLATIon VoLume 2 21