Page 65 - SAIT Compendium 2016 Volume1

s 6quat INCOME TAX ACT 58 OF 1962 s 6quin
of normal tax payable by that resident in respect of that subsequent year of assessment.
[Sub-s. (1C) inserted by s. 7 (c) of Act 35 of 2007 and substituted by s. 3 (1) (b) of Act 22 of 2012 (date of commencement deemed to have been 1 January 2012; the substitution applies iro amounts that become payable during years of assessment commencing on or after that date) and by s. 6 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the substitution applies iro years of assessment commencing on or after that date.]
(4) For the purpose of this section the amount of any foreign tax proved to be payable as contemplated in subsection (1A) or any amount paid or proved to be payable as contemplated in subsection (1C) in respect of any amount which is included in the taxable income of any resident during any year of assessment, shall be translated to the currency of the Republic on the last day of that year of assessment by applying the average exchange rate for that year of assessment.
[Sub-s. (4) substituted by s. 9 (1) (l) of Act 74 of 2002, by s. 7 (e) of Act 35 of 2007, by s. 7 (a) of Act 18 of 2009 and by s. 6 (1) (c) of Taxation Laws Amendment Act, 2015 (‘any amount paid or proved to be payable as contemplated in subsection’ inserted) – date of commencement:
1 January 2016; the substitution applies iro years of assessment commencing on or after that date.]
(4A) If the amount translated in accordance with subsection (4) includes a number of cents that is less than one rand, that amount must be rounded off to the nearest rand.
[Sub-s. (4A) inserted by s. 7 (b) of Act 18 of 2009.]
(5) Notwithstanding section 99 (1) or 100 of the Tax Administration Act, an additional or reduced assessment in respect of a year of assessment to give effect to subsections (1) and (1A) may be made within a period that does not exceed six years from the date of the original
assessment in respect of that year.
[Sub-s. (5) amended by s. 9 (1) (m) of Act 74 of 2002 and substituted by s. 7 (e) of Act 35 of 2007, by s. 271 of Act 28 of 2011 and by s. 3 of Act 39 of 2013 – date of commencement: 16 January 2014.]
[S. 6quat inserted by s. 9 of Act 89 of 1969, repealed by s. 5 of Act 94 of 1983, inserted by s. 5 of Act 85 of 1987, amended by s. 5 of Act 28 of 1997, by s. 12 of Act 53 of 1999 and by s. 16 of Act 30 of 2000 and substituted by s. 4 of Act 59 of 2000 and by s. 11 (1) (g) of Act 24 of 2011.]
6quin Rebate in respect of foreign taxes on income from source within Republic
(1) . . .
[Sub-s. (1) amended by s. 4 (1) (a) and (b) of Act 22 of 2012 and by s. 13 (1) (a) of Act 24 of 2011 (as substituted by s. 189 (1) of Act 31 of 2013) and deleted by s. 7 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the deletion applies iro years of assessment commencing on or after that date.]
(2) . . .
[Sub-s. (2) deleted by s. 7 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the deletion applies iro years of assessment commencing on or after that date.]
(3) . . .
[Sub-s. (3) amended by s. 4 (1) (c) of Act 22 of 2012 and deleted by s. 7 (1) (a) of Taxation Laws Amendment Act, 2015 – date of commencement: 1 January 2016; the deletion applies iro years of assessment commencing on or after that date.]
Prelex
Wording of sub-s. (1C) in force until 1 January 2016
(1C) For the purpose of determining the taxable income derived by any resident from carrying on any trade, there may at the election of the resident be allowed as a deduction from the income of such resident so derived the sum of any taxes on income (other than taxes contemplated in subsection (1A)) proved to be payable by that resident 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.
(1D) Notwithstanding the provisions of subsection (1C), the deduction of any tax paid or proved to be payable as contemplated in that subsection shall not in aggregate exceed the total taxable income (before taking into account any such deduction) attributable to income which is subject to taxes as contemplated in that subsection, provided that in determining the amount of the taxable income that is attributable to that income, any allowable deductions contemplated in section 11 (n), 18 and 18A must be deemed to have been incurred proportionately in the ratio that income bears to total income.
[Sub-s. (1D) inserted by s. 7 (c) of Act 35 of 2007 and substituted by s. 6 (1) (b) of Taxation Laws Amendment Act, 2015 (‘paid or’ inserted before ‘proved to be payable’) – date of commencement: 1 January 2016; the substitution applies iro years of assessment commencing on or after that date.]
(2) The rebate under subsection (1) and the deduction under subsection (1C) shall not be granted in addition to any relief to which the resident is entitled under any agreement between the governments of the Republic and the said other country for the prevention of or relief from double taxation, but may be granted in substitution for the relief to which the resident would be so entitled.
[Sub-s. (2) substituted by s. 7 (d) of Act 35 of 2007.] (3) For the purposes of this section—
‘controlled company’ . . .
[De nition of ‘controlled company’ deleted by s. 9 (1) (j) of Act 74 of 2002.]
‘controlling company’ . . .
[De nition of ‘controlling company’ deleted by s. 9 (1) (j) of
Act 74 of 2002.]
‘group of companies’ . . .
[De nition of ‘group of companies’ deleted by s. 9 (1) (j) of
Act 74 of 2002.]
‘qualifying interest’ . . .
[De nition of ‘qualifying interest’ deleted by s. 16 (1) (k) of
Act 45 of 2003.]
‘taxes on income’ does not include any compulsory payment to the government of any other country which constitutes a consideration for the right to extract any mineral or natural oil;
[De nition of ‘taxes on income’ inserted by s. 9 (1) (k) of Act 74 of 2002.]
Prelex
Wording of sub-ss. (1) to (3) in force until 1 January 2016
(1) Subject to subsections (3) and (3A), where any portion of the taxable income of a resident is attributable to an amount that is from a source within the Republic and is received by or accrued to that resident in respect of services rendered within the Republic, and an amount of tax in respect of that amount is—
SAIT CompendIum oF TAx LegISLATIon VoLume 1
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INCOME TAX ACT – SECTIONS