Page 333 - SAIT Compendium 2016 Volume1

Fourth Schedule INCOME TAX ACT 58 OF 1962 Fourth Schedule
[Sub-para. (3) substituted by s. 32 (b) of Act 103 of 1976, by s. 41 of Act 20 of 2006 and by s. 56 (1) of Act 8 of 2007, amended by s. 66 (1) of Act 35 of 2007 and by s. 68 (1) of Act 60 of 2008 and substituted by s. 20 of Act 18 of 2009.]
(4) The amount to be deducted or withheld in respect of any amount contemplated in paragraph (eA) of the de nition of ‘gross income’ in section 1 of this Act, shall be ascertained by the employer on inquiry from the Commissioner before the date of transfer or conversion of any amount for the bene t or ultimate bene t of any member as contemplated in such paragraph and the Commissioner’s determination of the amount to be so deducted or withheld shall be nal.
[Sub-para. (4) added by s. 46 (1) of Act 28 of 1997.]
(5) The amount to be deducted or withheld in respect of employees’ tax from any amount paid or payable to any director of any private company during any year of assessment of that director, in respect of services rendered or to be rendered by that director to that company, shall be determined after taking into account any amount of employees’ tax paid or payable to the Commissioner by that company during that year of assessment, in respect of that director in terms of paragraph 11C (2).
[Sub-para. (5) added by s. 21 (1) (b) of Act 19 of 2001.]
(6) There must be deducted from the amount to be withheld or deducted by way of employees’ tax as contemplated
in paragraph 2 the amount—
(a) of the medical scheme fees tax credit that applies in respect of that employee in terms of section 6A; and
(b) where the employee is entitled to a rebate under section 6 (2) (b), of the additional medical expenses tax credit that
applies in respect of that employee in terms of section 6B (3) (a) (i),
if—
(i) the employer effects payment of the medical scheme fees as contemplated in section 6A (2) (a); or
(ii) the employer does not effect payment of the medical scheme fees as contemplated in section 6A (2) (a), at the option of the employer, if proof of payment of those fees has been furnished to the employer.
[Sub-para. (6) added by s. 95 (1) of Act 24 of 2011 (date of commencement: 1 March 2012; this subparagraph applies iro years of assessment commencing on or after that date) and substituted by s. 8 (b) of Tax Administration Laws Amendment Act, 2015 – date of commencement: date of promulgation of Tax Administration Laws Amendment Act, 2015.]
10. (1) If the Commissioner is satis ed that the circumstances warrant a variation of the basis provided in paragraph 9 for the determination of amounts of employees’ tax to be deducted or withheld from remuneration of employees in the case of any employer he may agree with such employer as to the basis of determination of the said amounts to be applied by that employer, and the amounts to be deducted or withheld by that employer in terms of paragraph 2 shall, subject to the provisions of paragraphs 11 and 12, be determined accordingly.
(2) Any agreement made in terms of subparagraph (1) shall remain in force inde nitely, but the Commissioner or the employer concerned may give notice of termination thereof and upon the expiration of a period of three months from the date of such notice such agreement shall terminate.
11. The Commissioner may, having regard to the circumstances of the case, issue a directive—
(a) to an employer authorising that employer—
(i) to refrain from deducting or withholding any amount under paragraph 2 by way of employees’ tax from any remuneration due to any employee of that employer; or
(ii) to deduct or withhold by way of employees’ tax from any remuneration in terms of paragraph 2, a speci ed amount or an amount to be determined in accordance with a speci ed rate or scale,
in order to alleviate hardship to that employee due to circumstances outside the control of the employee or to correct any error in regard to the calculation of employees’ tax, or in the case of remuneration constituting commission or where the remuneration is paid or payable to a personal service provider and that directive must be complied with; or
[Sub-para. (a) amended by s. 42 of Act 20 of 2006 and by s. 69 (1) of Act 60 of 2008.]
(b) to an employer which is a private company, authorising that employer—
(i) to refrain from paying any amount under paragraph 11C (2); or
(ii) to pay under that paragraph a speci ed amount or an amount to be determined in accordance with a speci ed
rate or scale,
in order to alleviate hardship to an employer which is a private company and the employer must comply with that
Prelex
Wording of sub-para. (6) in force until its substitution wef date of promulgation of Tax Administration Laws Amendment Act, 2015
(6) There must be deducted from the amount to be withheld or deducted by way of employees’ tax as contemplated in paragraph 2 the amount of the medical scheme fees tax credit that applies in respect of that employee in terms of section 6A if—
(a) the employer effects payment of the medical scheme fees as contemplated in section 6A (2) (a); or
(b) the employer does not effect payment of the medical scheme fees as contemplated in section 6A (2) (a), at the
option of the employer, if proof of payment of those fees has been furnished to the employer.
directive.
[Para. 11 substituted by s. 39 of Act 21 of 1995 and by s. 84 of Act 45 of 2003.]
11A. (1) Where by virtue of the provisions of paragraph (b), (d) or (e) of the de nition of ‘remuneration’ in paragraph 1, the remuneration of an employee includes—
(a) any gain made by the exercise, cession, or release of any right to acquire any marketable security as contemplated
in section 8A;
SAIT CompendIum oF TAx LegISLATIon VoLume 1 325
INCOME TAX ACT – SCHEDULES