Page 105 - SAIT Compendium 2016 Volume1

s 10 INCOME TAX ACT 58 OF 1962 s 10
(h) and (i) of Act 96 of 1981, by s. 6 (1) (b), (c), (d), (e), (f) and (g) of Act 91 of 1982, by s. 9 (1) (d) of Act 94 of 1983, by s. 6 (1) (c), (d) and (e) of Act 96 of 1985, by s. 7 (c) and (d) of Act 65 of 1986, by s. 3 (1) (a), (b) and (c) of Act 108 of 1986, by s. 9 (1) (e) and (f) of Act 85 of 1987, by s. 10 (1) (c), (d), (e), (f), (g), (h) and (i) of Act 101 of 1990, by s. 8 (1) (n) of Act 36 of 1996, by s. 21 (1) (f) and (g) of Act 30 of 2000, by s. 9 (b) and (c) of Act 19 of 2001, by s. 13 (1) (a) of Act 30 of 2002, by s. 36 of Act 12 of 2003, by s. 26 (1) (c) and (d) of Act 45 of 2003, by s. 8 of Act 16 of 2004, by s. 5 (a) and (b) of Act 9 of 2005, by s. 23 (a), (b) and (c) of Act 9 of 2006, by s. 2 (2) (b) and by s. 10 (1) (f) of Act 8 of 2007, by s. 1 (2) (c) of Act 3 of 2008, by s. 13 (1) (d) of Act 17 of 2009, by s. 18 (1) (h) and (i) of Act 7 of 2010 and by s. 28 (1) (j) of Act 24 of 2011 and substituted by s. 28 (1) (k) of Act 24 of 2011 – date of commencement: 1 March 2012.]
(iA) . . .
[Para. (iA) inserted by s. 7 (1) (b) of Act 90 of 1972,
substituted by s. 21 (1) (h) of Act 30 of 2000, by s. 13 (1) (j) of Act 59 of 2000 and by s. 18 (1) (b) of Act 74 of 2002 and deleted by s. 13 (1) (e) of Act 17 of 2009.]
(iB) any amount received by or accrued to a holder of a participatory interest in a portfolio of a collective investment scheme in securities by way of a distribution from that portfolio if that amount is deemed to have accrued to that portfolio in terms of section 25BA (1) (b) and that amount was subject to normal tax in the hands of that portfolio;
[Para. (iB) inserted by s. 13 (1) (f) of Act 17 of 2009 and substituted by s. 23 (1) (l) of Act 31 of 2013 and, before such substitution came into operation, was further substituted by s. 14 (1) (f) of Act 43 of 2014 – date of commencement: 1 March 2015; the substituted paragraph applies iro amounts received or accrued on or after that date.]
(j) the receipts and accruals of any bank, if such bank is not resident in the Republic and is entrusted by the Government of a territory outside the Republic with the custody of the principal foreign exchange reserves of that territory, and the Minister of Finance decides to apply the provisions of this paragraph to that bank in respect of the year of assessment under charge;
[Para. (j) substituted by s. 16 (1) (b) of Taxation
Laws Amendment Act, 2015 (the Commissioner is satis ed that’ deleted before ‘such bank’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(k) (i) dividends (other than dividends paid or declared by a headquarter company) received by or accrued to any person: Provided that this exemption shall not apply —
[Words preceding the proviso in sub-para. (i) substituted by s. 28 (1) (l) of Act 24 of 2011 (date of commencement deemed to have been 1 January 2011) and by s. 19 (1) (e) of Act 22 of 2012 (date of commencement deemed to have been 1 January 2011 as well).]
(aa) to dividends (other than those received by or accrued to or in favour of a person that is not a resident or a dividend contemplated in paragraph (b) of the de nition of ‘dividend’) distributed by a company that is a REIT, or a controlled company as de ned in section 25BB;
[Para. (aa) of the proviso in sub-para. (i) substituted by s. 12 (1) (b) of Act 129 of 1991, by s. 13 (1) (k) of Act
59 of 2000, by s. 18 (1) (c) of Act 74 of 2002, by s. 19 (1) (f) of Act 22 of 2012 and by s. 23 (1) (m) of Act 31 of 2013 – date of commencement deemed to have been
1 April 2013; this substitution applies in respect of years of assessment commencing on or after that date.]
(bb) . . .
[Para. (bb) amended by s. 13 (1) (l) of Act 59 of 2000,
substituted by s. 7 (1) (m) of Act 113 of 1993 and by s. 18 (1) (c) of Act 74 of 2002 and deleted by s. 13 (1) (g) of Act 17 of 2009.]
(cc) . . .
[Para. (cc) added by s. 18 (1) (g) of Act 53 of 1999 and
substituted by s. 16 (1) (c) of Act 60 of 2008 and by s. 18 (1) (l) of Act 7 of 2010 and deleted by s. 28 (1) (m) of Act 24 of 2011 – effective date of deletion: 1 April 2012.]
(dd) to any dividend in respect of a restricted equity instrument as de ned in section 8C to the extent that the restricted equity instrument was acquired in the circumstances contemplated in section 8C, unless—
[Words in para. (dd) preceding sub-para. (A) substituted by s. 28 (1) (l) of Act 24 of 2011 (date of commencement deemed to have been 1 January 2011) and by s. 19 (1) (g) of Act 22 of 2012 (date of commencement deemed to have been 1 January 2011 as well).]
(A)the restricted equity instrument constitutes an equity share, other than an equity share that would have constituted a hybrid equity instrument as de ned in section 8E (1) but for the three-year period requirement contemplated in that de nition;
(B) the dividend constitutes an equity instrument as de ned in that section; or (C) the restricted equity instrument constitutes an interest in a trust and, where that trust holds shares, all of those shares constitute equity shares, other than equity shares that would have constituted hybrid equity instruments as de ned in section 8E (1) but for the three-year period requirement
contemplated in that de nition;
[Para. (dd) added by s. 21 (1) (j) of Act 30 of 2000, substituted by s. 13 (1) (n) of Act 59 of 2000 and by
s. 26 (1) (b) of Act 60 of 2001, deleted by s. 26 (1) (g) of Act 45 of 2003, added by s. 18 (1) (m) of Act 7 of 2010 and substituted by s. 28 (1) (n) of Act 24 of 2011 – date of commencement: deemed to have been 1 January 2011.]
(ee) to any dividend received by or accrued to a company in consequence of—
(A) any cession of the right to that dividend;
or
(B) the exercise of a discretionary power
by any trustee of a trust,
unless that cession or exercise results in the holding by that company of all of the rights attaching to a share;
[Words following sub-para. (B) substituted by s. 23 (1) (n) of Act 31 of 2013 – date of commencement deemed to have been 25 October 2012; this substitution applies in respect of dividends received or accrued on or after that date.]
[Para. (ee) added by s. 28 (1) (o) of Act 24 of 2011 (date of commencement: 1 April 2012). The said s. 28 (1) (o) was retrospectively repealed, wef 10 January 2012, by s. 166 (1) (a) of Act 22 of 2012. A new para. (ee) was added by s. 19 (1) (h) of Act 22 of 2012 – date of commencement deemed to have been 25 October 2012.]
(ff) to any dividends received by or accrued to a company in respect of a share borrowed by that company; or
[Para. (ff) added by s. 28 (1) (o) of Act 24 of 2011 (date of commencement: 1 April 2012). The said s. 28 (1) (o) was retrospectively repealed, wef 10 January 2012, by s. 166 (1) (a) of Act 22 of 2012. A new para. (ff) was added by
SAIT CompendIum oF TAx LegISLATIon VoLume 1
97
INCOME TAX ACT – SECTIONS