Page 85 - SAIT Compendium 2016 Volume1

s 9
INCOME TAX ACT 58 OF 1962 s 9A
(i)
(iv) that is a municipal entity as de ned in section 1 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000);
constitutes a lump sum, a pension or an annuity and the services in respect of which that amount is so received or accrues were rendered within the Republic: Provided that if the amount is received or accrues in respect of services which were rendered partly within and partly outside the Republic, only so much of that amount as bears to the total of that amount the same ratio as the period during which the services were rendered in the Republic bears to the total period during which the services were rendered must be regarded as having been received by or accrued to the person from a source within the Republic;
(4) An amount is received by or accrues to a person from a source outside the Republic if that amount—
(a) constitutes a foreign dividend received by or accrued
to that person;
(b) constitutes interest as de ned in section 24J (1)
received by or accrued to that person that is not from a source within the Republic in terms of subsection (2) (b);
[Para. (b) substituted by s. 11 of Taxation Laws Amendment Act, 2015 – date of commencement: date of promulgation of Taxation Laws Amendment Act, 2015.]
(c) constitutes a royalty received by or accrued to that person that is not from a source within the Republic in terms of subsection (2) (c) or (d);
(d) constitutes an amount received or accrued to that person in respect of the disposal of an asset that is not from a source within the Republic in terms of subsection (2) (j) or (k); or
(e) is attributable to any exchange difference determined in terms of section 24I in respect of any exchange item as de ned in that section to which that person is a party and is not from a source within the Republic in terms of subsection (2) (l).
[S. 9 amended by s. 7 (a) and (b) of Act 90 of 1962, by s. 6 of Act 72 of 1963, by s. 7 of Act 90 of 1964, by s. 9 (1) (a) and (b) of Act 95 of 1967, by s. 12 (a), (b), (c) and (d) of Act 89 of 1969, by s. 6 (1) (a) and (b) of Act 65 of 1973, by s. 9 (a), (b) and (c) of Act 85 of 1974, by s. 8 of Act 103 of 1976, by s. 9 of Act 121 of 1984, by s. 5 (b) of Act 96 of 1985, by s. 6 of Act 65 of 1986, by s. 2 (1) of Act 108 of 1986, by s. 7 (1) (a) and (b) of Act 85 of 1987, by s. 36 (6) of Act 9 of 1989, by s. 10 (a) and (b) of Act 129 of 1991, by s. 7 (a) and (b) of Act 141 of 1992, by s. 5 of Act 113 of 1993, by s. 3 (1)ofAct140of1993,bys.7(1)ofAct21of1994,bys.9 (a) and (b) of Act 21 of 1995, by s. 7 of Act 28 of 1997, by s. 25 (1) (a) and (b) of Act 30 of 1998, by s. 15 (a) and (b) of Act 53 of 1999, by s. 7 (a), (b), (c), (d) and (e) of Act 59 of 2000, by s. 12 (1) (a), (b) and (c) of Act 74 of 2002, by s. 20 of Act 45 of 2003, by s. 11 (1) (a) and (b) of Act 32 of 2004, by s. 13 (1) (a) and (b) of Act 31 of 2005, by s. 8 (a), (b) and (c) of Act 20 of 2006 and by s. 14 (1) (a) and (b) of Act 7 of 2010 and substituted by s. 22 (1) of Act 24 of 2011 – date of commencement: 1 January 2012. This substituted section applies in respect of amounts received or accrued during years of assessment commencing on or after that date.]
9A Blocked foreign funds
(1) Where any amount, or any portion of any amount, received by or accrued to any person which is required to be included in the income of that person during any year of assessment may not be remitted to the Republic during that year as a result of currency or other restrictions or limitations imposed in terms of the laws of the country where the amount arose, that person shall be allowed to deduct from his or her income for that year an amount equal to so much of the amount or portion which may not be remitted as is required to be included in the income of that person for that year.
(2) The amount or portion which may not be remitted during the year of assessment contemplated in subsection (1) shall be deemed to be an amount received by or
[Words in para. (i) preceding the proviso substituted by s. 10 (1) (a) of Act 43 of 2014 – date of commencement: 1 March 2015; the substituted wording applies iro years of assessment commencing on or after that date.]
(j) constitutes an amount received or accrued in respect of the disposal of an asset that constitutes immovable property held by that person or any interest or right of whatever nature of that person to or in immovable property contemplated in paragraph 2 of the Eighth Schedule and that property is situated in the Republic;
[Para. (j) substituted by s. 16 (1) (c) of Act 31 of 2013 – substitution deemed to have come into operation on 1 January 2013 and applies in respect of years of assessment commencing on or after that date.]
(k) constitutes an amount received or accrued in respect of the disposal of an asset other than an asset contemplated in paragraph (j) if—
(l)
(i) that person is a resident and—
(aa) that asset is not attributable to a permanent
establishment of that person which is
situated outside the Republic; and
(bb) the proceeds from the disposal of that asset are not subject to any taxes on income payable to any sphere of government of any
country other than the Republic; or
(ii) that person is not a resident and that asset is attributable to a permanent establishment of that
person which is situated in the Republic; or
is attributable to any exchange difference determined in terms of section 24I in respect of any exchange item as de ned in that section to which that person is a party if—
(i) that person is a resident and—
(aa) that exchange item is not attributable to a
permanent establishment of that person
which is situated outside the Republic; and (bb) that amount is not subject to any taxes on income payable to any sphere of government
of any country other than the Republic; or
(ii) that person is not a resident and that exchange item is attributable to a permanent establishment
of that person which is situated in the Republic. (3) For the purposes of paragraph (i) of subsection (2), any amount granted to a person by way of [a] lump sum, a pension or [an] annuity must be deemed to have been received by or to have accrued to that person in respect of
services rendered by that person.
[Sub-s. (3) substituted retrospectively by s. 16 (1) (d) of Act 31 of 2013 (substitution deemed to have come into operation on 1 January 2013) and by s. 10 (1) (b) of Act 43 of 2014 – date of commencement: 1 March 2015; the substituted subsection applies iro years of assessment commencing on or after that date.]
SAIT CompendIum oF TAx LegISLATIon VoLume 1 77
Prelex
Wording of para. (b) in force until date of promulgation of Taxation Laws Amendment Act, 2015
(b) constitutes interest as de ned in section 24J (1) or
deemed interest as contemplated in section 8E (2) received by or accrued to that person that is not from a source within the Republic in terms of subsection (2) (b);
INCOME TAX ACT – SECTIONS