Page 351 - SAIT Compendium 2016 Volume1

Sixth Schedule INCOME TAX ACT 58 OF 1962 Sixth Schedule
(a) natural person (or the deceased or insolvent estate of a natural person that was a registered micro business at the time of death or insolvency); or
(b) company,
where the qualifying turnover of that person for the year of assessment does not exceed an amount of R1 million.
(2) If a person described in subparagraph (1) carries on a business during the relevant year of assessment for a period which is less than 12 months, the amount described in subparagraph (1) is reduced proportionally taking into account the number of full months that it did not carry on business during that year.
3 Persons that do not qualify as micro businesses
A person does not qualify as a micro business for a year of assessment where—
(a) that person at any time during that year of assessment holds any shares or has any interest in the equity of a company
other than a share or interest described in paragraph 4;
(b) more than 20 per cent of that person’s total receipts during that year of assessment consists of—
(i) where that person is a natural person (or the deceased or insolvent estate of a natural person that was a registered micro business at the time of death or insolvency), income from the rendering of a professional service; and
(ii) where that person is a company, investment income and income from the rendering of a professional service;
[Sub-para. (b) substituted by s. 86 (1) (a) of Act 7 of 2010.]
(c) at any time during that year of assessment that person is a ‘personal service provider’ or a ‘labour broker’, as de ned
in the Fourth Schedule, other than a labour broker in respect of which a certi cate of exemption has been issued in terms of paragraph 2 (5) of that Schedule;
(d) . . .
[Sub-para. (d) deleted by s. 86 (1) (b) of Act 7 of 2010.]
(e) the total of all amounts received by that person from the disposal of—
(i) immovable property used mainly for business purposes; and
[Item (i) substituted by s. 86 (1) (c) of Act 7 of 2010.]
(ii) any other asset of a capital nature used mainly for business purposes, other than any nancial instrument,
[Item (ii) substituted by s. 86 (1) (c) of Act 7 of 2010.]
exceeds R1,5 million over a period of three years comprising the current year of assessment and the immediately
preceding two years of assessment, or such shorter period during which that person was a registered micro business;
(f) in the case of a company—
(i) its year of assessment ends on a date other than the last day of February;
(ii) at any time during its year of assessment, any holder of shares in that micro business is a person other than a
natural person (or the deceased or insolvent estate of a natural person);
[Item (ii) substituted by s. 114 (a) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(iii) at any time during its year of assessment, any holder of shares in that micro business holds any shares or has any interest in the equity of any other company other than a share or interest described in paragraph 4: Provided that the provisions of this item do not apply to the holding of any shares in or interest in the equity of a company, if
the company—
[Words in item (iii) preceding the proviso substituted by s. 114 (b) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(aa) has not during any year of assessment—
(A) carried on any trade; and
(B) owned assets, the total market value of which exceeds R5 000; or
[Subitem (aa) substituted by s. 86 (1) (d) of Act 7 of 2010.]
(bb) has taken the steps contemplated in section 41 (4) to liquidate, wind up or deregister: Provided further that this
paragraph ceases to apply if the company has at any stage withdrawn any step so taken or does anything to invalidate any step so taken, with the result that the company will not be liquidated, wound up or deregistered;
[Subitem (bb) substituted by s. 86 (1) (d) of Act 7 of 2010.] [Item (iii) amended by s. 63 of Act 17 of 2009.]
(iv) it is a public bene t organisation approved by the Commissioner in terms of section 30;
[Item (iv) amended by s. 89 (a) of Taxation Laws Amendment Act, 2015 (‘or’ deleted) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(v) it is a recreational club approved by the Commissioner in terms of section 30A; (vi) it is an association approved by the Commissioner in terms of section 30B; or
[Item (vi) added by s. 89 (b) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(vii) it is a small business funding entity approved by the Commissioner in terms of section 30C;
[Item (vii) added by s. 89 (b) of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(g) in the case of a person that is a partner in a partnership during that year of assessment— (i) any of the partners in that partnership is not a natural person;
(ii) that person is a partner in more than one partnership at any time during that year of assessment; or
(iii) the qualifying turnover of that partnership for that year of assessment exceeds the amount described in
paragraph 2. (iv) . . .
[Item (iv) added by s. 86 (1) (g) of Act 7 of 2010 and deleted by s. 97 (1) (c) of Act 24 of 2011 – this deletion comes into operation as from the commencement of years of assessment commencing on or after 1 March 2012.]
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INCOME TAX ACT – SCHEDULES