Page 356 - SAIT Compendium 2016 Volume1

Seventh Schedule INCOME TAX ACT 58 OF 1962 Seventh Schedule
‘loan’ . . .
[De nition of ‘loan’ deleted by s. 93 (a) of Taxation Laws Amendment Act, 2015 – date of commencement: date of
promulgation of Taxation Laws Amendment Act, 2015.]
‘month’ means any of the twelve portions into which any calendar year is divided;
‘of cial rate of interest’* means—
(a) in the case of a debt which is denominated in the currency of the Republic, a rate of interest equal to the South
African repurchase rate plus 100 basis points; or
[Para. (a) substituted by s. 93 (b) of Taxation Laws Amendment Act, 2015 (‘loan’ replaced by ‘debt’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(b) in the case of a debt which is denominated in any other currency, a rate of interest that is the equivalent of the South African repurchase rate applicable in that currency plus 100 basis points:
[Para. (b) substituted by s. 93 (b) of Taxation Laws Amendment Act, 2015 (‘loan’ replaced by ‘debt’) – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
Provided that where a new repurchase rate or equivalent rate is determined, the new rate of interest applies for the purposes of this de nition from the rst day of the month following the date on which that new repurchase rate or equivalent rate came into operation;
[De nition of ‘of cial rate of interest’ amended by s. 26 (a) of Act 96 of 1985, by GN R2706 of 29 November 1985, by s. 33 (1) of Act 65 of 1986, by GN 2683 of 19 December 1986, by s. 28 of Act 85 of 1987, by GN R714 of 14 April 1989, by s. 24 (1) of Act 70 of 1989, by GN R763 of 29 March 1990, by s. 55 (1) of Act 101 of 1990, by s. 35 (1) of Act 141 of 1992, by GN R3353 of 11 December 1992, by s. 52 (1) of Act 113 of 1993, by GN 57 of 14 January 1994, by s. 30 (1) of Act 21 of 1994, by GN R1154 of 4 August 1995, by s. 40 (1) of Act 36 of 1996, by GN 1504 of 20 November 1998, by GN 539 of 22 April 1999, by GN R1022 of 27 August 1999 and by GN 183 of 25 February 2000, substituted by s. 54 of Act 30 of 2000, by s. 59 of Act 59 of 2000 and by s. 62 (a) of Act 74 of 2002 and amended by GN 1024 of 1 September 2004, by GN 870 of 31 August 2006, by GN 189 of 1 March 2007, by GN 809 of 31 August 2007, by GN 214 of 22 February 2008, by GN 930 of 29 August 2008, by GN 180 of 20 February 2009, by GN 618 of 29 May 2009, by GN 697 of 26 June 2009, by GN 892 of 31 August 2009 and by GN 866 of 1 October 2010 and substituted by s. 90 (1) of Act 7 of 2010.]
‘retirement-funding income’ means—
(a) in relation to any employee or the holder of an of ce (including a member of a body of persons whether or not established
by or in terms of any law) who in respect of his or her employment derives any income constituting remuneration as de ned in paragraph 1 of the Fourth Schedule and who is a member of or, as an employee, contributes to a pension fund or provident fund established for the bene t of employees of the employer from whom such income is derived, that part of the employee’s said income as is taken into account in the determination of the contributions made by the employer for the bene t of the employee to such pension fund or provident fund in terms of the rules of the fund; or
(b) in relation to a partner in a partnership (other than a partner contemplated in paragraph (a)) that part of the partner’s income from the partnership in the form of the partner’s share of pro ts as is taken into account in the determination of the contributions made by the partnership for the bene t of the partner to a pension fund or provident fund in terms of the rules of the fund: Provided that for the purposes of this de nition a partner in a partnership must be deemed to be an employee of the partnership and a partnership must be deemed to be the employer of the partners in that partnership;
[De nition of ‘retirement-funding income’ inserted by s. 117 (1) (c) of Act 31 of 2013 – date of commencement: 1 March 2016 (‘1 March 2015’ replaced by ‘1 March 2016’ by s. 129 (1) of Act 43 of 2014); the inserted de nition applies iro contributions made on or after that date.]
‘taxable bene t’ means a taxable bene t contemplated in paragraph 2, whether the grant of such bene t is voluntary or otherwise, but excluding—
(a) any bene t the amount or value of which is exempt from normal tax under the provisions of section 10 of this Act; (b) any bene t provided by any bene t fund in respect of medical, dental and similar services, hospital services, nursing
services and medicines;
(c) any lump sum bene t payable by a bene t fund, pension fund, pension preservation fund, provident fund or
provident preservation fund being a bene t referred to in the de nition of ‘bene t fund’ in section 1 of this Act or in paragraph (i) of the proviso to paragraph (c) of the de nition of ‘pension fund’ in that section or in paragraph (a) of the de nition of ‘provident fund’ in that section;
[Sub-para. (c) substituted by s. 26 (b) of Act 96 of 1985 and by s. 47 of Act 3 of 2008.]
(d) any bene t or privilege received by or accrued to a person contemplated in section 9 (2) (g) or (h) stationed outside
the Republic which is attributable to that person’s services rendered outside the Republic; or
[Sub-para. (d) added by s. 62 (b) of Act 74 of 2002 and substituted by s. 101 (1) (b) of Act 24 of 2011 – date of commencement: 1 January 2012. This substitution applies in respect of amounts received or accrued during years of assessment commencing on or after that date.]
(e) any severance bene t.
[Sub-para. (e) added by s. 101 (1) (c) of Act 24 of 2011 – date of commencement deemed to have been 1 March
2011.]
* The of cial rate of interest was xed at 7% wef 1 October 2010 – GN 866 in GG 33597 of 1 October 2011. However, as from 1 March 2011 the provisions of the de nition apply (of cial rate of interest = repo rate + 100 basis points). The repo rate was changed to 6,25% wef 20 November 2015. With effect from 1 December 2015 (in terms of the proviso to the de nition), the of cial rate of interest is therefore 7,25%.
348 SAIT CompendIum oF TAx LegISLATIon VoLume 1
Prelex
De nition of ‘loan’ in force until its deletion wef date of promulgation of Taxation Laws Amendment Act, 2015
‘loan’ includes any form of credit and any loan applied directly towards the replacement of any other loan;