Page 291 - SAIT Compendium 2016 Volume1

s 64EB INCOME TAX ACT 58 OF 1962 s 64F
(xi) any person to the extent that the dividend constitutes income of that person;
(xii) ...
[Sub-para. (xii) deleted by s. 74 of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(xiii) any delity or indemnity fund contemplated in section 10 (1) (d) (iii), borrows a share in a listed company from another person; or
(xiv) a small business funding entity as contemplated in section 10 (1) (cQ),
[Sub-para. (xiv) retrospectively added by s. 69 (1) (b) of Act 43 of 2014 – date of commencement deemed to have been 4 July 2013; the subparagraph applies iro amounts paid on or after that date.]
borrows a share in a listed company from another
person; and
(b) a dividend is either announced or declared before that
share is borrowed,
any amount paid by that person to that other person not exceeding that dividend in respect of that borrowed share is deemed to be a dividend paid by that person for the bene t of that other person.
[Words following para. (b) retrospectively substituted by s. 69 (1) (c) of Act 43 of 2014 – date of commencement deemed to have been 4 July 2013; the substitution applies iro amounts paid on or after that date.]
(3) For the purposes of this Part, where—
(a) a person that is contemplated in section 64F (1) acquires a share in a listed company (or any right in respect of that share) from another person after a dividend is announced or declared in respect of that
share; and
(b) that acquisition is part of a resale agreement between
the person acquiring that share and that other person or any other company forming part of the same group of companies as that other person,
that other person or other company is deemed to be the bene cial owner of that dividend.
(4) For the purposes of this section, ‘resale agreement’ means the acquisition of a share by any person subject to an agreement in terms of which that person undertakes to dispose of that share or any other share of the same kind and of the same or equivalent quality at a future date.
[S. 64EB inserted by s. 85 (1) of Act 22 of 2012 and substituted by s. 103 (1) of Act 31 of 2013 – substitution deemed to have come into operation on 4 July 2013 and applies in respect of amounts paid on or after that date.]
64F Exemption from tax in respect of dividends other than dividends in specie
[Heading of s. 64F substituted by s. 78 (1) (a) of Act 24 of 2011 – date of commencement: 1 April 2012.]
(1) Any dividend is exempt from the dividends tax to the extent that it does not consist of a dividend in specie if the bene cial owner is—
(a) a company which is a resident;
(b) the government of the Republic in the national, provincial or local sphere;
[Para. (b) substituted by s. 70 (1) (a) of Act 43 of 2014 – date of commencement: 20 January 2015.]
(c) a public bene t organisation approved by the Commissioner in terms of section 30 (3);
(d) a trust contemplated in section 37A;
(e) an institution, board or body contemplated in section
10 (1) (cA);
(f) a fund contemplated in section 10 (1) (d) (i) or (ii); (g) a person contemplated in section 10 (1) (t);
(h) a holder of shares in a registered micro business, as
de ned in the Sixth Schedule, paying that dividend, to the extent that the aggregate amount of dividends paid by that registered micro business to all holders of shares in that registered micro business during the year of assessment in which that dividend is paid does not exceed the amount of R200 000;
[Para. (h) substituted by s. 104 (1) (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
Prelex
Wording of sub-para. (xii) in force until its deletion wef date of promulgation of Taxation Laws Amendment Act, 2015
(xii) any person to the extent that the dividend was subject to the secondary tax on companies;
(i)
a small business funding entity as contemplated in
section 10 (1) (cQ);
[Para. (i) substituted by s. 72 (1) (a) of Act 7 of 2010,
deleted by s. 78 (1) (c) of Act 24 of 2011 (date of commencement: 1 April 2012) and inserted by s. 70 (1) (b) of Act 43 of 2014 – date of commencement: 1 March 2015.]
(iA) . . .
[Para. (iA) inserted by s. 72 (1) (b) of Act 7 of 2010 and
deleted by s. 78 (1) (c) of Act 24 of 2011.]
(j) a person that is not a resident and the dividend is a dividend contemplated in paragraph (b) of the
de nition of ‘dividend’ in section 64D;
(k) a portfolio of a collective investment scheme in
securities;
[Para. (k) added by s. 86 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(l)
any person to the extent that the dividend constitutes
income of that person;
[Para. (l) added by s. 86 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(m) any person to the extent that the dividend was subject to the secondary tax on companies;
[Para. (m) added by s. 86 (1) (b) of Act 22 of 2012 – date of commencement deemed to have been 1 April 2012.]
(n) any delity or indemnity fund contemplated in section 10 (1) (d) (iii); or
[Para. (n) added by s. 86 (1) (d) of Act 22 of 2012 – date of commencement: 1 January 2013; this paragraph applies in respect of dividends paid on or after that date.]
(o) a natural person or deceased estate or insolvent estate of that person in respect of a dividend paid in respect of a tax free investment as contemplated in section 12T (1).
[Para. (o) added by s. 70 (1) (c) of Act 43 of 2014 (date of commencement: 1 March 2015. The paragraph applies iro dividends paid on or after that date) and substituted by s. 75 (1) of Taxation Laws Amendment Act, 2015 – date of commencement deemed to have been 1 March 2015 as well.]
(2) Any dividend paid by a REIT or a controlled company, as de ned in section 25BB, and received or accrued before 1 January 2014 is exempt from the dividends tax to the extent that the dividend does not consist of a dividend in specie.
Prelex
Wording of para. (o) in force until its retrospective substitution wef 1 March 2015
(o) a natural person in respect of a dividend paid in
respect of a tax free investment as contemplated in section 12T (1).
SAIT CompendIum oF TAx LegISLATIon VoLume 1 283
INCOME TAX ACT – SECTIONS