Page 104 - SAIT Compendium 2016 Volume1

s 10 INCOME TAX ACT 58 OF 1962 s 10
from the income of that person for the purposes of determining the taxable income derived by the person from carrying on any trade;
[Para. (gH) inserted by s. 28 (1) (h) of 24 of 2011 (date
of commencement: 1 March 2012) and substituted by s. 19 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 March 2012 as well; substituted subparagraph applies in respect of receipts and accruals on or after that date.]
(gI) any amount received or accrued in respect of a policy of insurance relating to the death, disablement, illness or unemployment of any person who is insured in terms of that policy of insurance, including the policyholder or an employee of the policyholder in respect of that policy of insurance to the extent to which the bene ts in terms of that policy are paid as a result of death, disablement, illness or unemployment other than any policy of which the bene ts are paid or payable by a retirement fund;
[Para. (gI) inserted by s. 23 (1) (i) of Act 31 of 2013 and substituted by s. 14 (1) (d) of Act 43 of 2014 and by s. 16 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement of insertion and both substitutions: 1 March 2015; the substitution applies iro years of assessment commencing on or after that date.]
(hA)any amount received by or accrued to the holder of a debt—
(i) if the holder of that debt is a company that forms part of the same group of companies, as de ned in section 41, as the issuer of that debt; and
(ii) to the extent that the amount is attributable to any amount of interest as de ned in section 23K (1) that is not deductible as a result of the application of section 23K;
[Para. (hA) inserted by s. 10 (1) (n) of Act 141 of 1992, amended by s. 7 (1) (l) of Act 113 of 1993, by s. 10 (1) (d) of Act 21 of 1995, by s. 8 (1) (m) of Act 36 of 1996, by s. 21 (1) (e) of Act 30 of 2000, by s. 13 (1) of Act 59 of 2000 and by s. 18 (1) (a) of Act 74 of 2002, deleted by s. 14 (1) (c) of Act 32 of 2004, inserted by s. 28 (1) (i) of 24 of 2011 (date of commencement deemed to have been 3 June 2011) and substituted by s. 19 (1) (d) of Act 22 of 2012 – date of commencement: 1 January 2013.]
(hB) the amount of any service fee as de ned in section 51A which is received or accrues by or to any person that is not a resident, to the extent that the person is subject to the withholding tax on service fees under Part IVC† of this Chapter;
[Para. (hB) inserted by s. 23 (1) (k) of Act 31 of 2013 – date of commencement: 1 January 2016; the paragraph applies iro amounts received on or after that date.]
(i) in the case of any taxpayer who is a natural person, so much of the aggregate of any interest received by or accrued to him or her, other than interest in respect of a tax free investment as de ned in section 12T (1), from a source in the Republic as does not during the year of assessment exceed—
[Words in para. (i) preceding sub-para. (i) substituted by
s. 14 (1) (e) of Act 43 of 2014 – date of commencement: 1 March 2015; the substituted wording applies iro interest received or accrued on or after that date.]
(i) in the case of any person who was or, had he or she lived, would have been at least 65 years of age on the last day of the year of assessment, the amount of R34 500; or
[Sub-para. (i) substituted by s. 6 (1) of Act 23 of 2013 –
date of commencement of substitution deemed to have been 1 March 2013; the substituted amount applies in respect of years of assessment commencing on or after that date.]
(ii) in any other case, the amount of R23 800;
[Sub-para. (ii) substituted by s. 6 (1) of Act 23 of 2013 –
date of commencement of substitution deemed to have been 1 March 2013; the substituted amount applies in respect of years of assessment commencing on or after that date.]
[Para. (i) amended by s. 7 (a) of Act 72 of 1963, substituted by s. 8 (a) of Act 90 of 1964, by s. 10 (b) of Act 88 of 1965, by s. 11 (b) of Act 55 of 1966 and by s. 8 (1) (a) of Act 76 of 1968, amended by s. 13 (1) (d), (e) and (f) of Act 89 of 1969, by s. 9 (1) (a) and (b) of Act 52 of 1970, by s. 9 (a) of Act 88 of 1971, by s. 7 (1) (a) of Act 90 of 1972, by s. 7 (1) (a) and (b) of Act 65 of 1973, by s. 10 (1) (f), (g) and (h) of Act 85 of 1974, by s. 9 (b) of Act 103 of 1976, by s. 8 (1) of Act 113 of 1977, by s. 4 (1) (a) and (b) of Act 101 of 1978, by s. 7 (1) (a), (b), (c), (d), (e) and (f) of Act 104 of 1979, by s. 7 (1) (b) and (c) of Act 104 of 1980, by s. 8 (1) (e), (f), (g),
Prelex
Wording of para. (gI) in force from 1 March 2015 until the retrospective substitution thereof, also wef 1 March 2015
(gI) any amount received or accrued in respect of a policy
of insurance relating to the death, disablement, illness or unemployment of a person who is the policyholder or an employee of the policyholder in respect of that policy of insurance to the extent to which the bene ts in terms of that policy are paid as a result of death, disablement, illness or unemployment;
(h) any amount of interest which is received or accrues by or to any person that is not a resident, unless—
(i) that person is a natural person who was physically present in the Republic for a period exceeding 183 days in aggregate during the twelve-month period preceding the date on which the interest is received or accrues by or to that person; or
(ii)the debt from which the interest arises is effectively connected to a permanent establishment of that person in the Republic;
[Para. (h) substituted by s. 9 (a) of Act 103 of 1976, amended by s. 10 (1) (c) of Act 121 of 1984, by s. 9 (1) (d) of Act 85 of 1987, by s. 7 (1) (a) of Act 90 of 1988, by
s. 7 (1) of Act 70 of 1989, by s. 10 (1) (a) of Act 21 of 1995 and by s. 13 (1) of Act 59 of 2000, substituted by s. 14 (1) (b) of Act 32 of 2004, amended by s. 10 (1) (l) of Act 20 of 2006 and substituted by s. 13 (1) (c) of Act 17 of 2009, by s. 19 (1) (c) of Act 22 of 2012* and by s. 23 (1) (j) of Act 31 of 2013 – date of commencement: 1 January 2015; the substitution applies iro amounts received or accrued on or after that date.]
[Note: A proviso was added to para. (h) by s. 10 (1) (b) of 1990 – this provision never came into operation and para. (b) of the said s. 10 (1) was deleted by s. 144 (1) of Act 22 of 2012.]
* Date of commencement: 1 July 2013; the substituted paragraph applies in respect of amounts that— (a) accrue; or
(b) are paid or that become due and payable,
on or after that date.
† Part IVC was to have come into operation on 1 January 2016. The commencement date of that Part has, however, been substituted by s. 149 (1) of the Taxational Laws Amendment Act, 2015, and it is now to come into operation on 1 January 2017.
96 SAIT CompendIum oF TAx LegISLATIon VoLume 1