Page 218 - SAIT Compendium 2016 Volume1

s 25D INCOME TAX ACT 58 OF 1962 s 27
an international shipping company in any currency other than the functional currency of the international shipping company; and
(b) the functional currency of that international shipping
company is a currency other than the currency of the
Republic,
that amount must be determined in the functional currency of the international shipping company and must be translated to the currency of the Republic by applying the average exchange rate for that year of assessment.
[Sub-s. (6) added by s. 75 (1) (b) of Act 31 of 2013 (date of commencement: 1 April 2014) and substituted retrospectively by s. 46 (1) (a) of Act 43 of 2014 – date of commencement deemed to have been 1 April 2014 as well; the substitution applies in respect of years of assessment commencing on or after that date.]
(7) Any amounts received by or accrued to, or expenditure incurred by—
(a) a headquarter company contemplated in subsection (4);
or
(b) a domestic treasury management company contem-
plated in subsection (5); or
(c) an international shipping company contemplated in
subsection (6),
during any year of assessment in a functional currency that is a currency other than the currency of the Republic must be translated to the currency of the Republic by applying the average exchange rate for the relevant year of assessment.
[Sub-s. (7) added by s. 46 (1) (b) of Act 43 of 2014 – date of commencement: 20 January 2015.]
[S. 25D inserted by s. 33 of Act 59 of 2000 and substituted by s. 37 (1) of Act 60 of 2001, by s. 28 (1) of Act 74 of 2002, by s. 44 (1) of Act 45 of 2003 and by s. 35 (1) of Act 31 of 2005.]
26 Determination of taxable income derived from farming
(1) The taxable income of any person carrying on pastoral, agricultural or other farming operations shall, in so far as it is derived from such operations, be determined in accordance with the provisions of this Act but subject to the provisions of the First Schedule.
(2) In the case of any person who has discontinued carrying on pastoral, agricultural or other farming operations and is still in possession of any livestock or produce, or has entered into a ‘sheep lease’ or similar agreement relating to livestock or produce, which has been taken into account and in respect of which expenditure under the provisions of this Act or any previous Income Tax Act has been allowed in the determination of the taxable income derived by such person when such operations were carried on, the provisions of this Act, but subject to the provisions of paragraphs 1, 2, 3, 4, 5, 6, 7, 8, 9, or 11 of the First Schedule, shall continue to be applicable to that person in respect of such livestock or produce, as the case may be, until the year of assessment during which he disposes of the last of such livestock or produce, notwithstanding the fact that such operations have been discontinued.
[S. 26 substituted by s. 10 of Act 101 of 1978.]
26A Inclusion of taxable capital gain in taxable income
There shall be included in the taxable income of a person for a year of assessment the taxable capital gain of that person for that year of assessment, as determined in terms of the Eighth Schedule.
[S. 26A inserted by s. 14 of Act 5 of 2001.]
26B Taxation of oil and gas companies
(1) The taxable income of any oil and gas company, as de ned in the Tenth Schedule, shall be determined in accordance with the provisions of this Act but subject to the provisions of that Schedule.
(2) The dividends tax levied in respect of the amount of any dividend, as de ned in section 64D, that is paid as contemplated in section 64E (2) by an oil and gas company, as de ned in the Tenth Schedule, out of amounts attributable to its oil and gas income, as de ned in that Schedule, shall be determined in accordance with this Act but subject to that Schedule.
[Sub-s. (2) substituted by s. 24 (1) of Act 8 of 2007 and by s. 60 (1) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(3) Part IIA of Chapter III of this Act applies to the Tenth Schedule notwithstanding any provision to the contrary contained in subsections (1) and 2).
[S. 26B inserted by s. 21 of Act 20 of 2006.]
27 Determination of taxable income of co- operative societies and companies
(1) In the determination of the taxable income of any co-operative trading society, as de ned in the Co-operative Societies Act, 1939 (Act 29 of 1939), derived by that society from its transactions, whether with persons who are members or with persons who are not members of the society, the amount of any bonus distributed in any year of assessment to its members by any such society which is a closed society as de ned in section ninety-seven of that Act shall be allowed as a deduction from the income of the society in so far as such bonus does not exceed an amount equivalent to one-tenth of the aggregate value of the business of such society with its members during such year of assessment, but no such deduction shall be allowed in the case of any such co-operative trading society which is not such a closed society.
(2) In the determination of the taxable income of any agricultural co-operative, there shall be allowed as deductions from the income of such agricultural co- operative for the year of assessment in question—
(a) the amounts of any pro ts distributed by it during the
speci ed period in relation to the year of assessment by way of bonuses (other than bonuses distributed out of the stabilization fund referred to in paragraph (h)) to persons entitled to participate in such distribution: Provided that the amounts allowed as deductions under this paragraph shall not in the aggregate exceed an amount which bears to the taxable income of such agricultural co-operative for the year of assessment (as calculated before allowing any deductions under this paragraph and before setting off any balance of assessed loss brought forward from a previous year of assessment) the same ratio as the aggregate value of the business conducted by such agricultural co-operative with its members during such year bears to the aggregate value of all business conducted by it during such year;
[Para. (a) amended by s. 28 (a) of Act 129 of 1991, by s. 23 of Act 141 of 1992, by s. 23 (a) of Act 113 of 1993, by
s. 15 of Act 36 of 1996, by s. 34 of Act 59 of 2000 and by s. 29 of Act 74 of 2002.]
(b) subject to the provisions of subsections (3), (4) and (5), an allowance equal to two per cent of the cost (after the deduction of any amount referred to in subsection (4)) to such agricultural co-operative of—
(i) any building which was during the year of assessment wholly or mainly used by such co- operative as a storage building, if such building was erected by such co-operative or by any other
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SAIT CompendIum oF TAx LegISLATIon VoLume 1