Page 100 - SAIT Compendium 2016 Volume1

s 10 INCOME TAX ACT 58 OF 1962 s 10
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;
[Sub-para. (vi) added by s. 10 (1) (d) of Act 20 of 2006.]
[Para. (c) amended by s. 8 (a) of Act 90 of 1962 and by s. 10 (a) of Act 88 of 1965 and substituted by s. 10 (1) (a) of Act 85 of 1974.]
(cA) the receipts and accruals of—
(i) any institution, board or body (other than a
company as de ned 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—
[Wording in sub-para. (i) preceding item (aa) substituted by s. 28 (1) (a) of 24 of 2011, by s. 23 (1) (a) of Act 31 of 2013 (date of commencement deemed to have been 1 May 2011) and by s. 23 (1) (b) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(aa) conducts scienti c, 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 nancial assistance by way of loans or otherwise) designed to promote commerce, industry or agriculture or any branch thereof;
[Sub-para. (i) amended by s. 10 (1) (e) of Act 20 of 2006, by s. 10 (1) (b) of Act 8 of 2007, by s. 16 (a) of Act 35 of 2007, by s. 18 (1) (b) of Act 7 of 2010 and by s. 28 (1) (a) of 24 of 2011 – date of commencement deemed to have been 1 January 2011. This amended subparagraph applies in respect of years of assessment commencing on or after that date.]
(ii)any association, corporation or company contemplated in paragraph (a) of the de nition 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:
[Sub-para. (ii) substituted by s. 13 (1) (a) of Act 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 of its pro ts or gains to any person, other than, in the case of such company, to the holders of shares in that company;
[Sub-para. (i) substituted by s. 23 (1) (c) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(ii) required to utilise 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
(B) to the State:
Provided further that—
(a) where the Commissioner is satis ed 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) (iii) of the rst 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);
(c) . . .
[Para. (c) deleted by s. 271 of Act 28 of 2011 – date of
commencement: 1 October 2012.]
[Para. (cA) inserted by s. 11 (a) of Act 55 of 1966, substituted by s. 13 (1) (b) of Act 89 of 1969 and by s. 10 (1) (b) of Act 85 of 1974, amended s. 9 (1) (a) of Act 94 of 1983, by s. 36 (6) of Act 9 of 1989 and by s. 10 (1) (c) of Act 141 of 1992 and substituted by s. 10 (1) (a) of Act 28 of 1997.]
(cB) . . .
[Para. (cB) inserted by s. 10 (1) (c) of Act 85 of 1974,
amended by s. 9 (1) (b) of Act 94 of 1983, by s. 10 (1) (d) of Act 141 of 1992 and by s. 8 (1) (a) of Act 36 of 1996 and deleted by s. 21 (1) (a) of Act 30 of 2000.]
(cC) . . .
[Para. (cC) inserted by s. 10 (1) (c) of Act 85 of 1974,
amended by s. 8 (1) (b) of Act 69 of 1975, by s. 7 (a) of Act 65 of 1986, by s. 9 (1) (a) of Act 85 of 1987, by s. 10 (1) (e) of Act 141 of 1992, by s. 7 (1) (a) of Act 113 of 1993 and by s. 9 (1) (c) of Act 21 of 1994 and deleted by s. 21 (1) (a) of Act 30 of 2000.]
(cD) . . .
[Para. (cD) inserted by s. 10 (1) (c) of Act 85 of 1974,
substituted by s. 7 (1) (b) of Act 113 of 1993 and deleted by s. 21 (1) (a) of Act 30 of 2000.]
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SAIT CompendIum oF TAx LegISLATIon VoLume 1