Page 63 - SAIT Compendium 2016 Volume1

s 6B
INCOME TAX ACT 58 OF 1962 s 6quat
(c)
scheme fees tax credit to which that person is
entitled under section 6A (2) (b); and
(ii) 33,3 per cent of the amount of qualifying medical
expenses paid by the person; or
in any other case, if the aggregate of—
(i) the amount of the fees paid by the person to a medical scheme or fund contemplated in section 6A (2) (a) as exceeds four times the amount of the medical scheme fees tax credit to which that person is entitled under section 6A (2) (b); and
(ii) the amount of qualifying medical expenses paid by the person,
exceeds 7,5 per cent of the person’s taxable income (excluding any retirement fund lump sum bene t, retirement fund lump sum withdrawal bene t and severance bene t), 25 per cent of the excess.
(iii) contemplated in paragraph (a), (b) or (e) which represents capital of a trust, and which is included in the income of that resident in terms of section 25B (2A) or taken into account in determining the aggregate capital gain or aggregate capital loss of that resident in terms of paragraph 80 (3) of the Eighth Schedule,
there must be deducted from the normal tax payable in respect of that taxable income a rebate determined in accordance with this section.
[Sub-s. (1) amended by s. 8 (b) of Act 5 of 2001, by
s. 20 (1) (b) of Act 60 of 2001, by s. 9 (1) (a) and (b) of Act 74 of 2002, by s. 16 (1) (a) of Act 45 of 2003 and by s. 7 (a) of Act 35 of 2007 and substituted by s. 11 (1) (a) of Act 24 of 2011 – date of commencement: 1 January 2012. This substitution applies in respect of years of assessment commencing on or after that date.]
(1A) For the purposes of subsection (1), the rebate shall be an amount equal to the sum of any taxes on income proved to be payable to any sphere of government of any country other than the Republic, without any right of recovery by any person (other than a right of recovery in terms of any entitlement to carry back losses arising during any year of assessment to any year of assessment prior to such year of assessment), by—
[Para. (c) substituted by s. 3 (1) of Act 43 of 2014 – date of commencement deemed to have been 1 March 2014, the same date as the initial coming into operation of the paragraph; the substituted paragraph applies iro years of assessment commencing on or after that date.]
(4) For the purposes of this section, any amount contemplated in subsection (3) or the de nition of ‘qualifying medical expenses’ that has been paid by—
such resident in respect of—
(i) any income contemplated in subsection (1) (a);
or (ii) . . .
[Sub-para. (ii) substituted by s. 8 (d) of Act 5 of 2001 and deleted by s. 11 (1) (b) of Act 24 of 2011 – date of commencement: 1 January 2012. This deletion applies in respect of years of assessment commencing on or after that date.]
(iii) any amount of taxable capital gain as contem- plated in subsection (1) (e); or
[Sub-para. (iii) added by s. 8 (e) of Act 5 of 2001.]
(b) any controlled foreign company, in respect of such proportional amount contemplated in subsection (1)
(b), subject to section 72A (3); or
[Para. (b) substituted by s. 9 (1) (d) of Act 74 of 2002 and
(a) (b)
the estate of a deceased person is deemed to have been paid by the person on the day before his or her death; or an employer of the person is, to the extent that the amount has been included in the income of that person as a taxable bene t in terms of the Seventh Schedule, deemed to have been paid by that person.
[S. 6B inserted by s. 7 (1) of Act 22 of 2012 – date of
(a)
commencement: 1 March 2014. The inserted section applies in respect of years of assessment commencing on or after that date.]
6bis . . .
[S. 6bis inserted by s. 7 of Act 88 of 1965, substituted by s. 6 of Act 85 of 1974 and by s. 5 of Act 129 of 1991 and
repealed by s. 4 of Act 28 of 1997.]
6ter . . .
[S. 6ter inserted by s. 8 (1) of Act 95 of 1967, amended by s.
7 of Act 85 of 1974 and repealed by s. 6 of Act 129 of 1991.]
by s. 16 (1) (c) of Act 45 of 2003.]
[Para. (c) deleted by s. 16 (1) (d) of Act 45 of 2003.]
(d) . . .
[Para. (d) substituted by s. 9 (1) (e) of Act 74 of 2002 and
deleted by s. 16 (1) (d) of Act 45 of 2003.]
(e) . . .
[Para. (e) added by s. 20 (1) (d) of Act 60 of 2001,
substituted by s. 9 (1) (f) of Act 74 of 2002 and by s. 16 (1) (e) of Act 45 of 2003 and deleted by s. 9 (1) of Act 17 of 2009.]
(f) any other person contemplated in subsection (1) (f) (i) or (ii) or any trust contemplated in subsection (1) (f) (iii), in respect of the amount included in the taxable income of that resident as contemplated in subsection (1) (f),
[Para. (f) added by s. 20 (1) (d) of Act 60 of 2001.] which is so included in that resident’s taxable income: Provided that—
(i) where such resident is a member of any partnership or a bene ciary of any trust and such partnership or trust is liable for tax as a separate entity in such other country, a proportional amount of any tax payable by such entity, which is attributable to the interest of such resident in such partnership or trust, shall be deemed to have been payable by such resident; and
6quat Rebate or deduction in respect of foreign taxes on income
[Heading substituted by s. 7 (a) of Act 35 of 2007.]
(1) Subject to subsection (2), where the taxable income
of any resident during a year of assessment includes— (a) any income received by or accrued to such resident
from any source outside the Republic; or
(b) any proportional amount contemplated in section 9D;
or (c) . . .
[Para. (c) omitted by s. 11 (1) (a) of Act 24 of 2011.] (d) . . .
(c) . . .
(e) (f)
[Para. (d) omitted by s. 11 (1) (a) of Act 24 of 2011.] any taxable capital gain contemplated in section
26A, from a source outside the Republic; or
any amount—
(i) contemplated in paragraph (a) or (b) which
is received by or accrued to any other person and which is deemed to have been received by or accrued to such resident in terms of section 7;
(ii) of capital gain of any other person from a source outside the Republic and which is attributed to that resident in terms of paragraph 68, 69, 70, 71, 72 or 80 of the Eighth Schedule; or
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS