Page 139 - SAIT Compendium 2016 Volume1

s 12E
INCOME TAX ACT 58 OF 1962 s 12F
(aa) a company contemplated in paragraph (a) of the de nition of ‘listed company’;
(bb)any portfolio in a collective investment scheme contemplated in paragraph (e) of the de nition of ‘company’;
(cc) a company contemplated in section 10 (1) (e) (i) (aa), (bb) or (cc);
[Item (cc) substituted by s. 23 (1) (c) of Act 7 of 2010.] (dd) less than 5 per cent of the interest in a social or consumer co-operative or a co-operative burial society as de ned in section 1 of the Co-operatives Act, 2005 (Act 14 of 2005), or any other similar co-operative if all of the income derived from the trade of that co- operative during any year of assessment is
solely derived from its members;
[Item (dd) added by s. 14 (b) of Act 20 of 2006 and substituted by s. 25 (b) of Act 35 of 2007.]
(ee) any friendly society as de ned in section 1 of the Friendly Societies Act, 1956 (Act 25 of 1956);
[Item (ee) added by s. 14 (b) of Act 20 of 2006.]
(ff) less than 5 per cent of the interest in a primary savings co-operative bank or a primary savings and loans co-operative bank as de ned in the Co-operative Banks Act, 2007, that may provide, participate in
or undertake only the following—
(A) in the case of a primary savings co- operative bank, banking services contemplated in section 14 (1) (a) to
(d) of that Act; and
(B) in the case of a primary savings and
loans co-operative bank, banking services contemplated in section 14 (2) (a) or (b) of that Act;
[Item (ff) added by s. 25 (d) of Act 35 of 2007.]
(gg) a venture capital company as de ned in
section 12J;
[Item (gg) added by s. 23 (1) (e) of Act 60 of 2008.] (hh) any company, close corporation or co- operative if the company, close corporation
or co-operative—
(A) has not during any year of assessment
carried on any trade; and
(B) has not during any year of assessment
owned assets, the total market value of
which exceeds R5 000.
[Item (hh) added by s. 21 of Act 17 of 2009.]
(ii) any company, co-operative or close corporation if the company, co-operative or close corporation has taken the steps contemplated in section 41 (4) to liquidate, wind up or deregister: Provided that this item ceases to apply if the company, co-operative or close corporation has at any stage withdrawn any step so taken or does anything to invalidate any step so taken, with the result that the company, co-operative or close corporation will not be
liquidated, wound up or deregistered;
[Item (ii) added by s. 23 (1) (f) of Act 7 of 2010 and substituted by s. 25 of Act 22 of 2012 – date of commencement 1 February 2013.]
[Sub-para. (ii) substituted by s. 21 of Act 74 of 2002 and by s. 31 (1) (b) of Act 45 of 2003 and amended by s. 25 (a) of Act 35 of 2007.]
(iii) not more than 20 per cent of the total of all receipts and accruals (other than those of a capital nature)
and all the capital gains of the company, close corporation or co-operative consists collectively of investment income and income from the rendering of a personal service; and
[Sub-para. (iii) substituted by s. 31 (1) (c) of Act 45 of 2003 and by s. 25 (e) of Act 35 of 2007.]
(iv) such company is not a personal service provider as de ned in the Fourth Schedule;
[Sub-para. (iv) substituted by s. 23 (1) (f) of Act 60 of 2008.] [Para. (a) amended by s. 14 (a) of Act 20 of 2006 and by
s. 23 (1) (a) of Act 7 of 2010.]
(b) . . .
[Para. (b) deleted by s. 23 (1) (g) of Act 60 of 2008.]
runway or taxiway on any designated airport, and includes SAIT CompendIum oF TAx LegISLATIon VoLume 1 131
(c)
‘investment income’ means—
(i) any income in the form of dividends, foreign
dividends, royalties, rental derived in respect of immovable property, annuities or income of a similar nature;
[Sub-para. (i) substituted by s. 34 (1) (a) of Act 24 of 2011 – date of commencement: 1 April 2012.]
(ii) any interest as contemplated in section 24J (other than any interest received by or accrued to any co- operative bank as contemplated in paragraph (a) (ii) (ff)), any amount contemplated in section 24K and any other income which, by the laws of the Republic administered by the Commissioner, is subject to the same treatment as income from money lent; and
[Sub-para. (ii) substituted by s. 25 (f) of Act 35 of 2007.] (iii) any proceeds derived from investment or trading in nancial instruments (including futures, options and other derivatives), marketable
securities or immovable property;
(d) ‘personal service’, in relation to a company, co-operative
or close corporation, means any service in the eld of accounting, actuarial science, architecture, auctioneering, auditing, broadcasting, consulting, draftsmanship, education, engineering, nancial service broking, health, information technology, journalism, law, management, real estate broking, research, sport, surveying, translation, valuation or veterinary science, if—
(i) that service is performed personally by any person who holds an interest in that company, co-operative or close corporation; and
(ii) that company, or co-operative or close corporation does not throughout the year of assessment employ three or more full-time employees (other than any employee who is a holder of a share in the company or a member of the co-operative or close corporation, as the case may be, or who is a connected person in relation to a holder of a share in the company or a member), who are on a full-time basis engaged in the business of that company, co-operative or close corporation of rendering that service.
[Sub-para. (ii) substituted by s. 35 (c) of Act 31 of 2013 – date of commencement: 12 December 2013.]
[Para. (d) substituted by s. 9 (1) (e) of Act 9 of 2005, amended by s. 14 (d) of Act 20 of 2006 and by s. 23 (1) (g) of Act 7 of 2010 and substituted by s. 34 (1) (b) of Act 24 of 2011 – date of commencement: 10 January 2012.]
[S. 12E inserted by s. 12 of Act 19 of 2001 and amended by s. 31 (1) (a) of Act 45 of 2003.]
12F Deduction in respect of airport and port assets
[Heading substituted by s. 26 (1) (a) of Act 35 of 2007.] (1) For the purposes of this section—
‘airport asset’ means any aircraft hangar, apron,
INCOME TAX ACT – SECTIONS