Page 328 - SAIT Compendium 2016 Volume1

Fourth Schedule INCOME TAX ACT 58 OF 1962 Fourth Schedule
[Para. (a) substituted by s. 44 (1) (a) of Act 28 of 1997, by s. 53 (1) (b) of Act 59 of 2000 and by s. 6 (1) (f) of Tax Administration Laws Amendment Act, 2015 (‘(cB),’ inserted before ‘(d)’) – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(b) any amount required to be included in such person’s gross income under paragraph (i) of that de nition, excluding an amount described in paragraph 7 of the Seventh Schedule;
[Sub-para. (b) substituted by s. 44 of Act 89 of 1969 and by s. 18 (1) (a) of Act 8 of 2010.]
(bA) any allowance or advance, which must be included in the taxable income of that person in terms of section 8 (1) (a)
(i), other than—
(i) an allowance in respect of which paragraph (c) or (cA) applies; or
[Sub-para. (i) substituted by s. 28 (1) (a) of Act 9 of 2006.]
(ii) an allowance or advance paid or granted to that person in respect of accommodation, meals or other incidental
costs while that person is by reason of the duties of his or her of ce obliged to spend at least one night away from his or her usual place of residence in the Republic: Provided that where—
(aa) such an allowance or advance was paid or granted to a person during any month in respect of a night away
from his or her usual place of residence; and
(bb) that person has not by the last day of the following month either spent the night away from his or her usual
place of residence or refunded that allowance or advance to his or her employer,
that allowance or advance is deemed not to have been paid or granted to that person during that rst-mentioned month in respect of accommodation, meals or other incidental costs, but is deemed to be an amount which has become payable to that person in that following month in respect of services rendered by that person;
[Item (ii) substituted by s. 49 (1) (c) of Act 31 of 2005.]
[Para. (bA) inserted by s. 32 (1) (b) of Act 30 of 2002.]
(c) 50 per cent of the amount of any allowance referred to in section 8 (1) (d) granted to the holder of a public of ce
contemplated in section 8 (1) (e);
[Para. (c) inserted by s. 44 (1) (b) of Act 129 of 1991, substituted by s. 33 (b) of Act 141 of 1992, amended by s. 48 (1) of
Act 113 of 1993, substituted by s. 16 of Act 140 of 1993 and by s. 37 (1) of Act 21 of 1995, amended by s. 44 (1) (b) of Act 28 of 1997, by s. 52 (1) (b) of Act 30 of 1998 and by s. 32 (1) (a) of Act 30 of 2002 and substituted by s. 28 (1) (b) of Act 9 of 2006.]
(cA)80 per cent of the amount of any allowance or advance in respect of transport expenses referred to in section 8 (1) (b), other than any such allowance or advance contemplated in section 8 (1) (b) (iii) which is based on the actual distance travelled by the recipient, and which is calculated at a rate per kilometre which does not exceed the appropriate rate per kilometre xed by the Minister of Finance under section 8 (1) (b) (iii): Provided that where the employer is satis ed that at least 80 per cent of the use of the motor vehicle for a year of assessment will be for business purposes, then only 20 per cent of the amount of such allowance or advance must be included;
[Sub-para. (cA) inserted by s. 28 (1) (c) of Act 9 of 2006 and substituted by s. 17 (1) (b) of Act 18 of 2009 and by s. 18 (1) (b) of Act 8 of 2010.]
(cB)80 per cent of the amount of the taxable bene t as determined in terms of paragraph 7 of the Seventh Schedule: Provided that where the employer is satis ed that at least 80 per cent of the use of the motor vehicle for a year of assessment will be for business purposes, then only 20 per cent of such amount must be included;
[Sub-para. (cB) inserted by s. 18 (1) (c) of Act 8 of 2010 and amended by s. 93 (b) of Act 24 of 2011 – date of commencement: 10 January 2012.]
(d) any gain determined in terms of section 8B, which must be included in that person’s income under that section; [Sub-para. (d) inserted by s. 46 (1) (b) of Act 32 of 2004 and substituted by s. 49 (1) (d) of Act 31 of 2005.]
(e) any amount referred to in section 8C which is required to be included in the income of that person;
[Para. (e) inserted by s. 46 (1) (b) of Act 32 of 2004 and substituted by s. 6 (1) (g) of Tax Administration Laws Amendment
Act, 2015 (‘gain determined in terms of’ replaced by ‘amount referred to in’) – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
(f) any amount deemed to be income accrued to that person in terms of section 7 (11), [Sub-para. (f) added by s. 17 (1) (c) of Act 18 of 2009.]
but not including—
(i) . . .
[Para. (i) amended by s. 6 (b) of Act 30 of 1984 and deleted by s. 34 of Act 36 of 1996.]
(ii) any amount paid or payable in respect of services rendered or to be rendered by any person (other than a person who is not a resident or an employee contemplated in paragraph (b), (c), (d), (e) or (f) of the de nition of ‘employee’) in the course of any trade carried on by him independently of the person by whom such amount is paid or payable and of the person to whom such services have been or are to be rendered: Provided that for the purposes of this paragraph a person shall not be deemed to carry on a trade independently as aforesaid if the services are required to be performed mainly at the premises of the person by whom such amount is paid or payable or of the person to whom such services were or are to be rendered and the person who rendered or will render the services is subject to the control or supervision of any other person as to the manner in which his or her duties are performed or to be performed or as to his hours of work: Provided further that a person will be deemed to be carrying on a trade independently as aforesaid if he throughout the year of assessment employs three or more employees who are on a full time basis engaged in the business of such person of rendering any such service, other than any employee who
is a connected person in relation to such person;
[Para. (ii) substituted by s. 47 (1) (c) of Act 85 of 1974 and amended by s. 44 (1) (e) of Act 101 of 1990, by s. 53 (1) (c) of Act 59 of 2000 and by s. 54 (1) (d), (e), (f) and (g) of Act 8 of 2007.]
320 SAIT CompendIum oF TAx LegISLATIon VoLume 1