Page 84 - SAIT Compendium 2016 Volume1

s 8FA INCOME TAX ACT 58 OF 1962 s 9
Government Notice R1029 published in Government Gazette 35950 of 12 December 2012) issued—
(i) by a bank as de ned in section 1 of that Act; or (ii) by a controlling company in relation to that bank; (c) an instrument of any class that is subject to approval
as contemplated—
(i) in the Short-term Insurance Act in accordance
with the conditions determined in terms of section 23 (a) (i) of that Act by the Registrar de ned in that Act, where an amount is owed in respect of that instrument by a short-term insurer as de ned in that Act; or
(ii) in the Long-term Insurance Act in accordance with the conditions determined in terms of section 24 (a) (i) of that Act by the Registrar de ned in that Act, where an amount is owed in respect of that instrument by a long-term insurer as de ned in that Act; or
(d) an instrument that constitutes a linked unit in a company where the linked unit is held by a long-term insurer as de ned in the Long-term Insurance Act, a pension fund, a provident fund, a REIT or a short-term insurer as de ned in the Short-term Insurance Act, if—
(i) the long-term insurer, pension fund, provident fund, REIT or short-term insurer holds at least 20 per cent of the linked units in that company;
(ii) the long-term insurer, pension fund, provident fund, REIT or short-term insurer acquired those linked units before 1 January 2013; and
(iii) at the end of the previous year of assessment 80 per cent or more of the value of the assets of that company, re ected in the annual nancial statements prepared in accordance with the Companies Act for the previous year of assessment, is directly or indirectly attributable to immovable property.
[S. 8FA inserted by s. 14 (1) of Act 31 of 2013 – date of commencement: 1 April 2014; the inserted section applies in respect of amounts incurred on or after that date.]
9 Source of income
(1) For the purposes of this section, ‘royalty’ means any amount that is received or accrues in respect of the use, right of use or permission to use any intellectual property as de ned in section 23I.
(2) An amount is received by or accrues to a person from a source within the Republic if that amount—
(a) constitutes a dividend received by or accrued to that person;
(b) constitutes interest as de ned in section 24J where that interest—
[Words preceding sub-para. (i) substituted by
s. 16 (1) (a) of Act 31 of 2013 – date of commencement: see footnote.*]
(c) (d) (e)
(f)
(g) (h)
(i) is attributable to an amount incurred by a person that is a resident, unless the interest is attributable to a permanent establishment which is situated outside the Republic; or
(ii) is received or accrues in respect of the utilisation or application in the Republic by any person of any funds or credit obtained in terms of any form of interest-bearing arrangement;
constitutes a royalty that is attributable to an amount incurred by a person that is a resident, unless that royalty is attributable to a permanent establishment which is situated outside the Republic;
constitutes a royalty that is received or accrues in respect of the use or right of use of or permission to use in the Republic any intellectual property as de ned in section 23I;
is attributable to an amount incurred by a person that is a resident and is received or accrues in respect of the imparting of or the undertaking to impart any scienti c, technical, industrial or commercial knowledge or information, or the rendering of or the undertaking to render, any assistance or service in connection with the application or utilisation of such knowledge or information, unless the amount so received or accrued is attributable to a permanent establishment which is situated outside the Republic; is received or accrues in respect of the imparting of or the undertaking to impart any scienti c, technical, industrial or commercial knowledge or information for use in the Republic, or the rendering of or the undertaking to render, any assistance or service in connection with the application or utilisation of such knowledge or information;
is received or accrues in respect of the holding of a public of ce to which that person has been appointed or is deemed to have been appointed in terms of an Act of Parliament;
is received or accrues in respect of services rendered to or work or labour performed for or on behalf of any employer—
(i) in the national, provincial or local sphere of government of the Republic;
(ii) thatisaconstitutionalinstitutionlistedinSchedule 1 to the Public Finance Management Act;
Pendlex
[NB: Para. (d) has been deleted by s. 15 (1) (c) of Act 31 of 2013, a provision that is to come into operation on 1 January 2017 (‘1 January 2016’ replaced by ‘1 January 2017’ by s. 145 (1) of Taxation Laws Amendment Act, 2015) and is to apply in respect of amounts incurred on or after that date.]
[Sub-para. (ii) substituted by s. 16 (1) (b) of Act 31 of 2013 – date of commencement: 12 December 2013.]
(iii) that is a public entity listed in Schedule 2 or 3 to that Act; or
* Section 16 (2) of Act 31 of 2013 has been substituted by s. 146 (1) of Taxation Laws Amendment Act, 2015 (retrospectively, wef 12 December 2013). Section 16 (1) (a) comprises the amendment of s. 9 (2) (b) of the Income Tax Act and is deemed to have come into operation—
(a)
(b)
in the case of interest received in cash by any person during any year of assessment of that person that commences on or after 1 January 2013, on 1 April 2012 and applies iro any interest so received if that interest—
(i) accrued to that person on or after 1 April 2012; and
(ii) is received by that person on or after a date three months after the date on which that interest accrued to that
person; or
in the case of interest—
(i) received by or accrued to any person; and
(ii) that is not received by and accrued to that person as contemplated in paragraph (a),
on 1 January 2013 and applies iro any interest so received and accrued during years of assessment of that person that commence on or after that date.
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SAIT CompendIum oF TAx LegISLATIon VoLume 1