Page 275 - SAIT Compendium 2016 Volume1

s 48A INCOME TAX ACT 58 OF 1962 s 49C
48A Imposition of tax
There must be levied and paid for the bene t of the National Revenue Fund a tax, to be known as the turnover tax, payable by a person that was a registered micro business during a year of assessment, in respect of its taxable turnover for that year of assessment.
[S. 48A inserted by s. 54 (1) of Act 60 of 2008.]
48B Rates
(1) The rates of tax chargeable in terms of section 48A must be xed annually by Parliament.
(2) The rates xed by Parliament in respect of any year of assessment continue to apply until the next such determination of rates and will be applied for the purposes of calculating the tax payable in respect of the taxable turnover of a registered micro business during the next succeeding year of assessment if, in the opinion of the Commissioner, the calculation and collection of the tax chargeable in respect of such taxable turnover cannot without the risk of loss of revenue be postponed until after the rates for that year have been determined.
[S. 48B inserted by s. 54 (1) of Act 60 of 2008.]
48C Transitional provisions
(1) Where an amount—
(a) was received by a person during a year of assessment
when it was a registered micro business;
(b) was included in that person’s taxable turnover for that
year of assessment; and
(c) accrues to that person when it is no longer a registered
micro business,
that amount must not be taken into account as a receipt or accrual for purposes of determining the taxable income of that person.
(2) Where an amount—
(a) accrued to a person when it was a registered micro
business;
(b) would have been included in that person’s taxable
turnover had it been received on the date that it
accrued; and
(c) is received by that person when it is no longer a
registered micro business,
ten per cent of that amount must be included in the taxable income of that person for the year of assessment in which it is received.
[Words following para. (c) in sub-s. (2) substituted by s. 67 (1) of Taxation Laws Amendment Act, 2015 (‘20 per cent’ replaced by ‘ten per cent’) – date of commencement deemed to have been 1 March 2015.]
(3) Where a registered micro business is deregistered, any trading stock held and not disposed of by it as at the date with effect from which it is deregistered shall, for purposes of the application of section 22, be deemed to have been trading stock held and not disposed of by it at the beginning of the year of assessment within which that date falls.
[S. 48C inserted by s. 54 (1) of Act 60 of 2008.]
49 . . .
[S. 49 amended by s. 22 of Act 90 of 1962, by s. 9 of Act 6 of 1963, by s. 17 of Act 90 of 1964, by s. 31 (1) of Act 89 of 1969, by s. 24 (1) of Act 88 of 1971, by s. 24 (1) of Act 65 of 1973, by s. 34 (1) of Act 85 of 1974, by s. 23 (1) of Act 69 of 1975, by s. 20 (1) of Act 113 of 1977, by s. 21 of Act 104 of 1980, by s. 22 (1) of Act 96 of 1981, by s. 30 of Act 94 of 1983, by s. 26 (1) of Act 121 of 1984, by ss. 46 and 47 of Act 97 of 1986 and by s. 19 of Act 85 of 1987 and repealed by s. 31 (1) of Act 101 of 1990.]
Part IVA*
Withholding tax on royalties (ss. 49A–49H)
49A De nitions
In this Part—
‘foreign person’ means any person that is not a resident; ‘royalty’ means any amount that is received or accrues
in respect of—
(a) the use or right of use of or permission to use any
intellectual property as de ned in section 23I; or
(b) the imparting of or the undertaking to impart any scienti c, technical, industrial or commercial knowledge or information, or the rendering of or the undertaking to render any assistance or service in connection with the application or utilisation of such
knowledge or information.
[S. 49A inserted by s. 80 (1) of Act 22 of 2012 – date
of commencement: 1 July 2013; this section applies in respect of royalties that are paid or that become due and payable on or after that date, but only to the extent that the amount of the royalties was not subject to tax in terms of s. 35 of the Income Tax Act, 1962.]
49B Levy of withholding tax on royalties
(1) There must be levied for the bene t of the National Revenue Fund a tax, to be known as the withholding tax on royalties, calculated at the rate of 15 per cent of the amount of any royalty that is paid by any person to or for the bene t of any foreign person to the extent that the amount is regarded as having been received by or accrued to that foreign person from a source within the Republic in terms of section 9 (2) (c), (d), (e) or (f).
[Sub-s. (1) substituted by s. 97 (1) (a) of Act 31 of 2013
(substitution deemed to have come into operation on 1 July 2013) and by s. 97 (1) (b) of Act 31 of 2013 – date of commencement: 1 January 2015; the substitution applies in respect of royalties that are paid or that become due and payable on or after that date.]
(2) For the purposes of this Part, a royalty is deemed to be paid on the earlier of the date on which the royalty is paid or becomes due and payable.
(3) The withholding tax on royalties is a nal tax.
(4) Where a person making payment of a royalty to or for the bene t of a foreign person has withheld an amount as contemplated in section 49E (1), that person must, for the purposes of this Part, be deemed to have paid the amount so withheld to that foreign person.
[S. 49B inserted by s. 80 (1) of Act 22 of 2012 – date of commencement: 1 July 2013; this section applies in respect of royalties that are paid or that become due and payable on or after that date, but only to the extent that the amount of the royalties was not subject to tax in terms of s. 35 of the Income Tax Act, 1962.]
49C Liability for tax
(1) A foreign person to which a royalty is paid is liable for the withholding tax on royalties to the extent that the royalty is regarded as having been received by or accrued to that foreign person from a source within the Republic in terms of section 9 (2) (c), (d), (e) or (f).
(2) Any amount of withholding tax on royalties that is— (a) withheld as contemplated in section 49E (1); and
(b) paid as contemplated in section 49F (1),
is a payment made on behalf of the foreign person to which the royalty is paid in respect of that foreign person’s liability under subsection (1).
* Part IVA came into operation on 1 July 2013..
SAIT CompendIum oF TAx LegISLATIon VoLume 1 267
INCOME TAX ACT – SECTIONS