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Fourth Schedule INCOME TAX ACT 58 OF 1962 Fourth Schedule
Prelex
Wording of para. 11B in force until date of repeal wef 1 March 2016
11B. (1) For the purposes of this paragraph—
‘annual equivalent’, in relation to any net remuneration, means an amount equal to the sum of such net remuneration multiplied by the ratio which a full year bears to the period in respect of which such net remuneration is payable: Provided that where the Commissioner has in relation to the employment of any employee issued a directive as contemplated in paragraph (c) of the de nition of ‘standard employment’, he may further direct that the annual equivalent of the net remuneration derived by such employee from such standard employment be determined in such manner as the Commissioner may consider reasonable in the circumstances.
[De nition of ‘annual equivalent’ amended by s. 22 (a) of Act 70 of 1989.]
‘annual tax’, in relation to any amount of net remuneration, means an amount equal to the normal tax payable in accordance with the rates of tax xed in respect of the relevant year of assessment under section 5 (2) of this Act in respect of a taxable income equal to such net remuneration, less a deduction equal to the sum of the rebates to which the employee would have been entitled under section 6 (2) and (3) had the relevant year of assessment ended on the
last day of the relevant tax period;
[De nition of ‘annual tax’ substituted by s. 22 (b) of Act 70 of 1989 and by s. 47 (a) of Act 101 of 1990.]
‘net remuneration’ means the balance of any remuneration as determined by an employer under paragraph 2 (4)
or by the Commissioner under subparagraph (4), but excluding—
(a) any amounts which, when included in the taxpayer’s income, will result in the normal tax payable by him being
determined under the provisions of section 5 (10);
(b) any amount, if the taxpayer has in the production of such amount incurred expenditure which is deductible in the
determination of the taxable income derived by him from such amount, or if he is entitled to an allowance under section 11 (e) which is so deductible, and such expenditure or allowance, or the sum of such expenditure and allowance, as the case may be, exceeds 1 per cent of such amount;
[Para. (b) substituted by s. 47 (b) of Act 101 of 1990.]
(c) any remuneration derived by any person which is under the provisions of section 7 (2) deemed to be income
accrued to such person’s spouse;
(d) . . .
(e) . . .
[Item (c) substituted by s. 47 (b) of Act 101 of 1990 and by s. 46 (a) of Act 129 of 1991.]
[Para. (d) deleted by s. 22 (c) of Act 70 of 1989.]
[Para. (e) deleted by s. 47 (c) of Act 101 of 1990.] (f) any remuneration not derived—
(i) from standard employment; or
(ii) by way of an annuity provided or payable by a pension fund, pension preservation fund, provident fund,
provident preservation fund or bene t fund;
[Sub-para. (ii) substituted by s. 56 (1) of Act 59 of 2000 and by s. 44 (1) (a) of Act 3 of 2008.]
[Para. (f) substituted by s. 22 (d) of Act 70 of 1989, by s. 46 (b) of Act 129 of 1991 and by s. 34 (1) of Act 141 of 1992.]
(g) any remuneration paid or payable to any director of any company in respect of services rendered or to be rendered
by such director to such company;
[Para. (g) added by s. 46 (c) of Act 129 of 1991.]
(h) the amount of any allowance or advance contemplated in paragraphs (c) and (cA) of the de nition of ‘remuneration’
in paragraph 1;
[Para. (h) added by s. 46 (c) of Act 129 of 1991 and substituted by s. 33 (1) of Act 30 of 2002, by s. 56 (1) of Act 74 of 2002 and by s. 43 of Act 20 of 2006.]
(i)
(j)
remuneration derived by the taxpayer during any year of assessment in respect of which he is entitled to set off an assessed loss under section 20 (1);
[Para. (i) added by s. 46 (c) of Act 129 of 1991.]
any retirement fund lump sum bene t or retirement fund lump sum withdrawal bene t;
[Para. (j) added by s. 57 (1) (a) of Act 8 of 2007 and substituted by s. 70 (1) of Act 60 of 2008.] ‘standard employment’ means—
(a) any employment in terms of which an employee is required to render service to any one employer for a period of
at least 22 hours in every full week falling within the period of such employment: Provided that for the purposes of this paragraph no regard shall be had to—
(i) periods of temporary absence of an employee due to leave or exceptional circumstances; or (ii) any temporary reduction in working hours imposed by the employer; or
(b) the employment of any employee with an employer if such employee declares in writing that he does not and will not during the period in which he holds such employment render services (other than such casual services as may be determined by the Commissioner in the deduction tables prescribed by him under paragraph 9) to any other employer; or
[Para. (b) substituted by s. 47 (d) of Act 101 of 1990 and by s. 40 (a) of Act 21 of 1995.]
(c) where any employer conducts his business in such manner that employees are regularly or frequently employed for such periods as may be required by the employer, the employment of any such employee if the Commissioner, after consultation with the employer or with any body or association representing any group of employers, so
directs;
[De nition of ‘standard employment’ inserted by s. 22 (e) of Act 70 of 1989.]
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INCOME TAX ACT – SCHEDULES