Taxation Laws Amendment Act, 2012

130 Pages·2012·0.43 MB·English

REPUBLIC OFSOUTHAFRICA
TAXATION LAWS
AMENDMENT ACT
REPUBLIEK VAN SUID-AFRIKA
WYSIGINGSWET OP
BELASTINGWETTE
No 22, 2012
GENERALEXPLANATORYNOTE:
[ ] Wordsinboldtypeinsquarebracketsindicateomissionsfrom
existingenactments.
Words underlined with a solid line indicate insertions in
existingenactments.
ACT
To—
(cid:79) amendtheTransferDutyAct,1949,soastoamendaprovision;
(cid:79) amendtheIncomeTaxAct,1962,soastoamend,deleteandinsertcertain
definitions;toeffecttechnicalcorrections;torepealcertainprovisions;to
amend certain provisions; to make new provision; and to effect textual
andconsequentialamendments;
(cid:79) amendtheCustomsandExciseAct,1964,soastoamendprovisions;and
tomakeprovisionforcontinuations;
(cid:79) amendtheIncomeTaxAct,1990,soastoeffecttechnicalcorrections;
(cid:79) amendtheValue-AddedTaxAct,1991,soastoamendcertainprovisions;
(cid:79) amend the Unemployment Insurance ContributionsAct, 2002, so as to
amendaprovision;
(cid:79) amend the Securities Transfer Tax Act, 2007, so as to amend certain
provisions;andtoeffectaconsequentialamendment;
(cid:79) amendtheRevenueLawsAmendmentAct,2008,soastoeffecttechnical
corrections;
(cid:79) amendtheTaxationLawsAmendmentAct,2009,soastoeffecttechnical
corrections;
(cid:79) amend the Taxation Laws Amendment Act, 2010, so as to repeal a
provision;andtoeffecttechnicalcorrections;
(cid:79) amendtheTaxationLawsAmendmentAct,2011,soasrepealaprovision;
andtoeffecttechnicalcorrections;
andtoprovideformattersconnectedtherewith.
BEITENACTEDbytheParliamentoftheRepublicofSouthAfrica,asfollows:—
4
Amendment of section 9 ofAct 40 of 1949, as amended by section 3 ofAct 31 of
1953,section12ofAct80of1959,section3ofAct70of1963,section3ofAct77of
1964,section1ofAct81of1965,section7ofAct103of1969,section2ofAct89of
1972,section3ofAct66of1973,section5ofAct88of1974,section77ofAct54of
1976,section2ofAct95of1978,section6ofAct106of1980,section2ofAct99of 5
1981,section2ofAct118of1984,section3ofAct81of1985,section3ofAct86of
1987,section4ofAct87of1988,section36ofAct9of1989,section1ofAct69of
1989,section79ofAct89of1991,section6ofAct120of1992,section4ofAct136
of1992,section5ofAct97of1993,section2ofAct37of1995,section4ofAct126
of1998,section3ofAct32of1999,section3ofAct30of2000,section2ofAct5of 10
2001,section8ofAct60of2001,section3ofAct30of2002,section4ofAct74of
2002,section3ofAct45of2003,section2ofAct16of2004,section2ofAct32of
2004,section2ofAct31of2005,section16ofAct9of2006,section1ofAct20of
2006,section2ofAct35of2007,section1ofAct60of2008,section3ofAct17of
2009,section3ofAct7of2010andsection5ofAct24of2011 15
1.(1)Section9oftheTransferDutyAct,1949,isherebyamendedbythesubstitution
forsubsection(19)ofthefollowingsubsection:
‘‘(19)Nodutyshallbepayablebya[natural]person—
(a) [ontheconversionintermsof]inrespectofanytransactioncontemplatedin
Item 8 of Schedule 1 to the Share Blocks ControlAct, 1980 (Act No. 59 of 20
1980), in terms of which any right to or interest in the use of immovable
propertyconferredbyreasonoftheownershipofashareheldbythatperson
inashareblockcompanyas[contemplated]definedinsection1ofthatAct[,]
isconvertedtoownership[intheunitinrespectofwhichthatpersonhad
the right of use, if the acquisition of that share was subject to duty in 25
termsofthisAct]bythatpersonofthatimmovableproperty;or
(b) inrespectoftheacquisitionbythatpersonofapartoftheimmovableproperty
ofashareblockcompanyasdefinedinsection1oftheShareBlocksControl
Act,1980(ActNo.59of1980),wherethatpersonhadarightofuseofthat
part,whichrightwasconferredbyreasonoftheownershipofashareheldby 30
thatpersoninthatshareblockcompany.’’.
(2)Subsection(1)comesintooperationon1January2013andappliesinrespectof
acquisitionsmadeonorafterthatdate.
Amendment of section 1 ofAct 58 of 1962, as amended by section 3 ofAct 90 of
1962,section1ofAct6of1963,section4ofAct72of1963,section4ofAct90of 35
1964,section5ofAct88of1965,section5ofAct55of1966,section5ofAct76of
1968,section6ofAct89of1969,section6ofAct52of1970,section4ofAct88of
1971,section4ofAct90of1972,section4ofAct65of1973,section4ofAct85of
1974,section4ofAct69of1975,section4ofAct103of1976,section4ofAct113
of1977,section3ofAct101of1978,section3ofAct104of1979,section2ofAct104 40
of1980,section2ofAct96of1981,section3ofAct91of1982,section2ofAct94
of1983,section1ofAct30of1984,section2ofAct121of1984,section2ofAct96
of1985,section2ofAct65of1986,section1ofAct108of1986,section2ofAct85
of1987,section2ofAct90of1988,section1ofAct99of1988,GovernmentNotice
R780of1989,section2ofAct70of1989,section2ofAct101of1990,section2of 45
Act129of1991,section2ofAct141of1992,section2ofAct113of1993,section2
ofAct21of1994,GovernmentNotice46of1994,section2ofAct21of1995,section
2 of Act 36 of 1996, section 2 of Act 28 of 1997, section 19 of Act 30 of 1998,
GovernmentNotice1503of1998,section10ofAct53of1999,section13ofAct30
of2000,section2ofAct59of2000,section5ofAct5of2001,section3ofAct19of 50
2001,section17ofAct60of2001,section9ofAct30of2002,section6ofAct74of
2002,section33ofAct12of2003,section12ofAct45of2003,section3ofAct16
of2004,section3ofAct32of2004,section3ofAct32of2005,section19ofAct9
6
of2006,section3ofAct20of2006,section3ofAct8of2007,section5ofAct35of
2007,section2ofAct3of2008,section4ofAct60of2008,section7ofAct17of
2009,section6ofAct7of2010,section7ofAct24of2011anditem23ofSchedule
toAct28of2011
2.(1)Section1oftheIncomeTaxAct,1962,isherebyamended— 5
(a) by the addition in paragraph (e) of the definition of ‘‘company’’ of the
followingsubparagraph:
‘‘(iii) portfolioofacollectiveinvestmentschemeinproperty;or’’;
(b) bythesubstitutioninparagraph(a)ofthedefinitionof‘‘connectedperson’’
forsubparagraph(ii)ofthefollowingsubparagraph: 10
‘‘(ii) anytrust(otherthanaportfolioofacollectiveinvestmentscheme
in securities or a portfolio of a collective investment scheme in
property) of which such natural person or such relative is a
beneficiary;’’;
(c) bythesubstitutioninparagraph(b)ofthedefinitionof‘‘connectedperson’’ 15
forthewordsprecedingsubparagraph(i)ofthefollowingwords:
‘‘in relation to a trust (other than a portfolio of a collective investment
schemeinsecuritiesoraportfolioofacollectiveinvestmentschemein
property)—’’;
(d) by the substitution in the definition of ‘‘connected person’’ for paragraph 20
(bA)ofthefollowingparagraph:
‘‘(bA)inrelationtoaconnectedpersoninrelationtoatrust(otherthan
aportfolioofacollectiveinvestmentschemeinproperty[shares
managed or carried on by any company registered as a
manager under section 42 of the Collective Investment 25
SchemesControlAct,2002,forpurposesofPartVofthatAct
andotherthan]oraportfolioofacollectiveinvestmentscheme
in securities), includes any other person who is a connected
personinrelationtosuchtrust;’’;
(e) by the substitution in paragraph (d)(vi) of the definition of ‘‘connected 30
person’’foritem(bb)ofthefollowingitem:
‘‘(bb) anyrelativeofsuchmemberoranytrust(otherthanaportfolioof
a collective investment scheme in securities or a portfolio of a
collective investment scheme in property) which is a connected
personinrelationtosuchmember;and’’; 35
(f) bythedeletioninthedefinitionof‘‘foreigndividend’’ofitem(ii);
(g) bytheadditiontothedefinitionof‘‘foreigndividend’’ofthefollowingitem:
‘‘(iii) constitutesashareinthatforeigncompany;’’;
(h) by the insertion after the definition of ‘‘foreign equity instrument’’ of the
followingdefinition: 40
‘‘‘foreign investment entity’ means any person other than a natural
person—
(a) thatisnotincorporated,establishedorformedintheRepublic;
(b) theassetsofwhichconsistsolelyofaportfolioofoneormoreofthe
following: 45
(i) amountsincashorthatconstitutecashequivalents;
(ii) financialinstrumentsthat—
(aa) areissuedbyalistedcompanyorbythegovernmentof
theRepublicinthenational,provincialorlocalsphere;
or 50
(bb) ifnotissuedbyalistedcompanyorbythegovernment
of the Republic in the national, provincial or local
8
sphere,aretradedbymembersofthegeneralpublicand
amarketforthattradeexists;
(iii) financialinstruments,thevaluesofwhicharedeterminedwith
reference to financial instruments contemplated in subpara-
graph(ii);or 5
(iv) rights to receive any asset contemplated in subparagraph (i),
(ii)or(iii),
which amounts, financial instruments and rights are held by that
personforinvestmentpurposes;
(c) wherenomorethan10percentoftheshares,unitsorotherformof 10
participatoryinterestinthatpersonaredirectlyorindirectlyheldby
personsthatareresidents;and
(d) wherethatpersonhasnoemployeesandhasnodirectorsortrustees
that are engaged in the management of that person on a full-time
basis;’’; 15
(i) by the substitution in the definition of ‘‘foreign return of capital’’ for the
wordsfollowingparagraph(b)ofthefollowingwords:
‘‘butdoesnotincludeanyamountsopaidorpayabletotheextentthatthe
amountsopaidorpayable—
(i) is deductible by that foreign company in the determination of any 20
tax on income of companies of the country in which that foreign
companyhasitsplaceofeffectivemanagement;or
(ii) constitutessharesinthatforeigncompany;’’;
(j) by the insertion after the definition of ‘‘foreign return of capital’’ of the
followingdefinition: 25
‘‘‘foreigntaxyear’,inrelationtoaforeigncompany,meansanyyearor
periodofreportingforforeignincometaxpurposesbythatcompanyor,
ifthatcompanyisnotsubjecttoforeignincometax,anyannualperiodof
financialreportingbythatcompany;’’;
(k) bythedeletionofthedefinitionof‘‘governmentgrant’’; 30
(l) bythedeletionofthedefinitionof‘‘governmentscrappingpayment’’;
(m) bythesubstitutioninthedefinitionof‘‘grossincome’’forparagraph(ii)of
thefollowingparagraph:
‘‘(ii) inthecaseofanypersonotherthanaresident,thetotalamount,in
cash or otherwise, received by or accrued to or in favour of such 35
person from a source within [or deemed to be within] the
Republic,’’;
(n) by the substitution in the definition of ‘‘gross income’’ for paragraph (a) of
thefollowingparagraph:
‘‘(a)any amount received or accrued by way of annuity, including any 40
amount contemplated in the definition of ‘living annuity’ or the
definition of ‘annuity amount’ in section 10A(1), other than an
amountcontemplatedinparagraph(d)(ii);’’;
(o) by the substitution in paragraph (d) of the definition of ‘‘gross income’’ for
subparagraph(ii)ofthefollowingsubparagraph: 45
‘‘(ii) byortoaperson,ordependantornomineeoftheperson,directlyor
indirectlyinrespectofproceedsfromapolicyofinsurancewhere
the person is or was an employee or director of the policyholder;
or’’;
(p) by the deletion in paragraph (d)(iii) of the definition of ‘‘gross income’’ of 50
item(cc);
(q) bythesubstitutioninparagraph(m)ofthedefinitionof‘‘grossincome’’for
theprovisoofthefollowingproviso:
‘‘:Providedthat[—]
[(i)] anyamountsoreceivedoraccruedshallbereducedbytheamount 55
of any such loan or advance which is or has been included in the
taxpayer’sgrossincome;
[(ii) totheextentthatparagraph(a)or(d)ofthisdefinitionapplies
toanamount,thisparagraphdoesnotapplytothatamount;]’’;
10
(r) by the insertion after the definition of ‘‘hotel keeper’’ of the following
definition:
‘‘‘IFRS’meanstheInternationalFinancialReportingStandardsissued
bytheInternationalAccountingStandardsBoard;’’;
(s) by the substitution in paragraph (c) of the definition of ‘‘pension preserva- 5
tionfund’’forthewordsprecedingtheprovisoofthefollowingwords:
‘‘with the exception of amounts transferred to any other pension fund
[or],pensionpreservationfundorretirementannuityfund,notmorethan
one amount contemplated in paragraph 2(1)(b)(ii) of the Second
Schedule is allowed to be paid to the member during the period of 10
membershipofthefundoranyotherpensionpreservationfund’’;
(t) by the substitution in the definition of ‘‘person’’ for paragraph (d) of the
followingparagraph:
‘‘(d)any portfolio of a collective investment scheme [other than a
portfolioofacollectiveinvestmentschemeinproperty],’’; 15
(u) by the substitution in paragraph (c) of the definition of ‘‘provident
preservation fund’’ for the words preceding the proviso of the following
words:
‘‘withtheexceptionofamountstransferredtoanypensionfund,pension
preservationfund,otherprovidentfund[or],providentpreservationfund 20
or retirement annuity fund, not more than one amount contemplated in
paragraph2(1)(b)(ii)oftheSecondScheduleisallowedtobepaidtothe
member during the period of membership of the fund or any other
pensionpreservationfund’’;
(v) by the insertion after the definition of ‘‘regulation’’ of the following 25
definition:
‘‘‘REIT’meansacompany—
(a) thatisaresident;and
(b) thesharesofwhicharelisted—
(i) on an exchange (as defined in section 1 of the Securities 30
ServicesAct, 2004 (Act No. 36 of 2004), and licensed under
section10ofthatAct);and
(ii) as shares in a REIT as defined in the JSE Limited Listings
Requirements;’’;
(w) by the substitution in the definition of ‘‘resident’’ for the words following 35
paragraph(b)ofthefollowingwords:
‘‘butdoesnotinclude—
(A) anypersonwhoisdeemedtobeexclusivelyaresidentofanother
countryforpurposesoftheapplicationofanyagreemententered
into between the governments of the Republic and that other 40
countryfortheavoidanceofdoubletaxation;or
(B) anycompanyif—
(AA) that company is incorporated, established or formed in a
countryotherthantheRepublic;
(BB) thatcompanyhasitsplaceofeffectivemanagementinthe 45
Republic;
(CC) thatcompanywould,butforthecompanyhavingitsplace
of effective management in the Republic, be a controlled
foreigncompanywithaforeignbusinessestablishmentas
definedinsection9D(1);and 50
(DD) the aggregate amount of tax payable to all spheres of
governmentofanycountryotherthantheRepublicbythat
company in respect of any foreign tax year of that
companyisatleast75percentoftheamountofnormaltax
that would have been payable in respect of any taxable 55
income of that company had that company, but for this
subitem (B), been a resident for that foreign tax year:
Providedthattheaggregateamountoftaxsopayablemust
bedetermined—
12
(i) after taking into account any applicable agreement
forthepreventionofdoubletaxationandanycredit,
rebate or other right of recovery of tax from any
sphereofgovernmentofanycountryotherthanthe
Republic;and 5
(ii) afterdisregardinganylossinrespectofayearother
than that foreign tax year or from a company other
thanthatcompany;’’;
(x) bytheadditionofthefollowingprovisotothedefinitionof‘‘resident’’:
‘‘: Provided that where any person that is a resident ceases to be a 10
residentduringayearofassessment,thatpersonmustberegardedasnot
being a resident from the day on which that person ceases to be a
resident’’;
(y) by the addition of the following further proviso to the definition of
‘‘resident’’: 15
‘‘:Providedfurtherthatindeterminingwhetherapersonthatisaforeign
investmententityhasitsplaceofeffectivemanagementintheRepublic,
noregardmustbehadtoanyactivitythat—
(a) constitutes—
(i) a financial service as defined in section 1 of the Financial 20
AdvisoryandIntermediaryServicesAct,2002(ActNo.37
of2002);or
(ii) anyservicethatisincidentaltoafinancialservicecontem-
platedinsubparagraph(i)wheretheincidentalserviceisin
respect of a financial product that is exempted from the 25
provisions of that Act, as contemplated in section 1(2) of
thatAct;and
(b) iscarriedonbyafinancialserviceproviderasdefinedinsection1
oftheFinancialAdvisoryandIntermediaryServicesAct,2002(Act
No.37of2002),intermsofalicenceissuedtothatfinancialservice 30
providerundersection8ofthatAct’’;
(z) bythesubstitutionforthedefinitionof‘‘share’’ofthefollowingdefinition:
‘‘‘share’ means, in relation to any company, any [share or similar
equityinterest]unitintowhichtheproprietaryinterestinthatcompany
isdivided;’’; 35
(zA)bythesubstitutioninthedefinitionof‘‘specialtrust’’forparagraphs(a)and
(b)ofthefollowingparagraphs:
‘‘(a)solelyforthebenefitof[apersonwhosuffersfrom—
(i) any‘mentalillness’asdefinedinsection1oftheMental
HealthCareAct,2002(ActNo.17of2002);or 40
(ii) anyseriousphysicaldisability,]
one or more persons who is or are persons with a disability as
definedinsection18(3)wheresuch[illnessor]disabilityincapaci-
tates such person or persons from earning sufficient income for
[the]theirmaintenance[ofsuchperson],orfrommanaging[hisor 45
her]theirownfinancialaffairs:Providedthat—
(aa) [where the person for whose benefit the trust was so
createddies,]suchtrustshallbedeemednottobeaspecial
trustinrespectofyearsofassessmentendingonorafterthe
date[ofsuchperson’sdeath]onwhichallsuchpersonsare 50
deceased;and
(bb) wheresuchtrustiscreatedforthebenefitofmorethanone
person, all persons for whose benefit the trust is created
mustberelativesinrelationtoeachother;or
(b) byorintermsofthewillofadeceasedperson,solelyforthebenefit 55
ofbeneficiarieswhoarerelativesinrelationtothatdeceasedperson
and who are alive on the date of death of that deceased person
(includinganybeneficiarywhohasbeenconceivedbutnotyetborn
onthatdate),wheretheyoungestofthosebeneficiariesisonthelast
dayoftheyearofassessmentofthattrustundertheageof[21]18 60
years;’’;and
(zB)by the substitution in the definition of ‘‘spouse’’ for the proviso of the
followingproviso:
14
‘‘:Providedthatamarriageorunioncontemplatedinparagraph(b)or(c)
shall,intheabsenceofprooftothecontrary,bedeemedtobeamarriage
orunion[without]outofcommunityofproperty’’.
(2)Paragraphs(a),(t)and(v)ofsubsection(1)comeintooperationon1April2013
andapplyinrespectofyearsofassessmentcommencingonorafterthatdate. 5
(3) Paragraphs (b), (c), (d) and (e) of subsection (1) are deemed to have come into
operation as from the commencement of years of assessment commencing on or after
1January2010.
(4)Paragraph(f)ofsubsection(1)isdeemedtohavecomeintooperationon1March
2012. 10
(5) Paragraph (g) of subsection (1) is deemed to have come into operation on
1January2011.
(6)Paragraphs(h)and(y)ofsubsection(1)comeintooperationon1January2013
andapplyinrespectofyearsofassessmentcommencingonorafterthatdate.
(7)Paragraph(i)ofsubsection(1)isdeemedtohavecomeintooperationon1January 15
2011andappliesinrespectofamountspaidorthatbecamepayableonorafterthatdate.
(8)Paragraph(j)ofsubsection(1)isdeemedtohavecomeintooperationon1January
2012 and applies in respect of foreign tax years ending during years of assessment
commencingonorafterthatdate.
(9)Paragraphs(k)and(l)ofsubsection(1)comeintooperationon1January2013and 20
applyinrespectofyearsofassessmentcommencingonorafterthatdate.
(10) Paragraph (m) of subsection (1) is deemed to have come into operation on
1January2012andappliesinrespectofamountsreceivedoraccruedduringyearsof
assessmentcommencingonorafterthatdate.
(11)Paragraphs(n),(o),(p)and(q)ofsubsection(1)aredeemedtohavecomeinto 25
operationon1March2012andapplyinrespectofamountsreceivedoraccruedonor
afterthatdate.
(12)Paragraph(r)ofsubsection(1)comesintooperationon1January2013.
(13)Paragraphs(s)and(u)ofsubsection(1)aredeemedtohavecomeintooperation
on1March2012. 30
(14) Paragraph (w) of subsection (1) comes into operation on 1 January 2013 and
appliesinrespectofyearsofassessmentcommencingonorafterthatdate.
(15)Paragraph(x)ofsubsection(1)isdeemedtohavecomeintooperationon8May
2012andappliesinrespectofanypersonthatceasestobearesidentonorafterthatdate.
(16)Paragraph(z)ofsubsection(1)comesintooperationon1January2013. 35
(17) Paragraphs (zA) and (zB) of subsection (1) are deemed to have come into
operationasfromthecommencementofyearsofassessmentcommencingonorafter1
March2012.
Amendmentofsection6quatofAct58of1962,asinsertedbysection9ofAct89of
1969andamendedbysection5ofAct94of1983,section5ofAct85of1987,section 40
5ofAct28of1997,section12ofAct53of1999,section16ofAct30of2000,section
4ofAct59of2000,section8ofAct5of2001,section20ofAct60of2001,section
9ofAct74of2002,section16ofAct45of2003,section4ofAct32of2004,section
8ofAct31of2005,section7ofAct35of2007,section9ofAct17of2009,section
7ofAct18of2009andsection11ofAct24of2011 45
3.(1)Section6quatoftheIncomeTaxAct,1962,isherebyamended—
(a) bythesubstitutioninsubsection(1A)fortheprovisoofthefollowingproviso:
‘‘:Providedthat—
(i) wheresuchresidentisamemberofanypartnershiporabeneficiary
of any trust and such partnership or trust is liable for tax as a 50
separateentityinsuchothercountry,aproportionalamountofany
tax payable by such entity, which is attributable to the interest of
suchresidentinsuchpartnershiportrust,shallbedeemedtohave
beenpayablebysuchresident;and
(ii) forthepurposesofthissubsection,theamountsoincludedinsuch 55
resident’s taxable income must be determined without regard to
section10B(3).’’;and
16
(b) bythesubstitutionforsubsection(1C)ofthefollowingsubsection:
‘‘(1C)Forthepurposeofdeterminingthetaxableincomederivedby
anyresidentfromcarryingonanytrade,there[shall]mayattheelection
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 5
contemplatedinsubsection(1A))provedtobepayablebythatresidentto
any sphere of government of any country other than the Republic,
withoutanyrightofrecoverybyanypersonotherthanarightofrecovery
intermsofanyentitlementtocarrybacklossesarisingduringanyyearof
assessmenttoanyyearofassessmentpriortosuchyearofassessment.’’. 10
(2)Paragraph(a)ofsubsection(1)isdeemedtohavecomeintooperation—
(a) insofar as it applies to any person that is a natural person, deceased estate,
insolvent estate or trust, on 1 March 2012 and applies in respect of foreign
dividendsreceivedoraccruedonorafterthatdate;and
(b) insofarasitappliestoanypersonthatisapersonotherthananaturalperson, 15
deceased estate, insolvent estate or trust, on 1 April 2012 and applies in
respectofforeigndividendsreceivedoraccruedonorafterthatdate.
(3) Paragraph (b) of subsection (1) is deemed to have come into operation on 1
January 2012 and applies in respect of amounts that become payable during years of
assessmentcommencingonorafterthatdate. 20
Amendmentofsection6quinofAct58of1962,asinsertedbysection12ofAct24
of2011andamendedbysection13ofAct24of2011
4.(1)Section6quinoftheIncomeTaxAct,1962,isherebyamended—
(a) bythesubstitutioninsubsection(1)forthewordsprecedingparagraph(a)of
thefollowingwords: 25
‘‘Subjecttosubsection(3),whereanyportionofthetaxableincomeofa
residentisattributabletoanamountthatis,withouttakingintoaccount
any agreement between the government of the Republic and any other
country for the avoidance of double taxation, from a source within the
Republic and is received by or accrued to that resident in respect of 30
servicesrenderedwithintheRepublic,andanamountoftaxinrespectof
thatamountis—’’;
(b) by the substitution in subsection (1) for paragraph (b) of the following
paragraph:
‘‘(b)imposedbyanysphereofgovernmentofanycountry— 35
(aa) otherthantheRepublic;and
(bb) with which the Republic has not concluded an agreement for
theavoidanceofdoubletaxation,
intermsofthelawsofthatcountry,’’;
(c) bythesubstitutioninsubsection(3)forthewordsfollowingparagraph(c)of 40
thefollowingwords:
‘‘is—
(i) takenintoaccountindetermininganyamountofanyrebatethatis,
intermsofsection6quat(1),deductedfromthenormaltaxpayable
bythatresident;or 45
(ii) deducted from the income of that resident in terms of section
6quat(1C).’’;and
(d) bytheadditionofthefollowingsubsection:
‘‘(5) Where, during any year of assessment, a rebate has been
deducted in terms of this section from the normal tax payable by a 50
residentasaresultofanyamountoftaxhavingbeen—
(a) leviedandwithheldascontemplatedinsubsection(1)(a);or
(b) imposedascontemplatedinsubsection(1)(b),
and,inanyyearofassessmentsubsequenttothatyearofassessment,the
resident— 55
(i) receivesanyamountbywayofrefundinrespectoftheamountof
taxsoleviedandwithheld;or
(ii) isdischargedfromanyliabilityinrespectoftheamountoftaxso
imposed,
18
so much of the amount so received or the amount of that discharge as
doesnotexceedthatrebatemustbedeemedtobeanamountofnormal
tax payable by that resident in respect of that subsequent year of
assessment.’’.
(2) Subsection (1) is deemed to have come into operation on 1 January 2012 and 5
applies in respect of amounts of tax levied and withheld or imposed by any sphere of
government of any country other than the Republic during years of assessment
commencingonorafterthatdate.
Repealofsection6sexofAct58of1962
5.(1)TheIncomeTaxAct,1962,isherebyamendedbytherepealofsection6sex. 10
(2)Subsection(1)isdeemedtohavecomeintooperationon1April2012.
Amendmentofsection6AofAct58of1962,asinsertedbysection10ofAct24of
2011andamendedbysection3ofAct13of2012
6.(1)Section6AoftheIncomeTaxAct,1962,isherebyamendedbythesubstitution
forsubsection(1)ofthefollowingsubsection: 15
‘‘(1) A rebate, to be known as the medical scheme fees tax credit, must be
deducted from the normal tax payable by a taxpayer who is a natural person[,
unlessthetaxpayerisentitledtoarebateundersection6(2)(b)].’’.
(2) Subsection (1) comes into operation on 1 March 2014 and applies in respect of
yearsofassessmentcommencingonorafterthatdate. 20
Insertionofsection6BinAct58of1962
7.(1)TheIncomeTaxAct,1962,isherebyamendedbytheinsertionaftersection6A
ofthefollowingsection:
‘‘Additionalmedicalexpensestaxcredit
6B.(1)Forthepurposesofthissection— 25
‘child’meansaperson’schildorchildofhisorherspousewhowasalive
duringanyportionoftheyearofassessment,andwhoonthelastdayofthe
yearofassessment—
(a) was unmarried and was not or would not, had he or she lived, have
been— 30
(i) overtheageof18years;
(ii) overtheageof21yearsandwaswhollyorpartiallydependent
formaintenanceuponthepersonandhasnotbecomeliablefor
thepaymentofnormaltaxinrespectofsuchyear;or
(iii) overtheageof26yearsandwaswhollyorpartiallydependent 35
formaintenanceuponthepersonandhasnotbecomeliablefor
the payment of normal tax in respect of such year and was a
full-time student at an educational institution of a public
character;or
(b) inthecaseofanyotherchild,wasincapacitatedbyadisabilityfrom 40
maintaininghimselforherselfandwaswhollyorpartiallydependent
for maintenance upon the person and has not become liable for the
paymentofnormaltaxinrespectofthatyear;
‘dependant’means—
(a) aperson’sspouse; 45
(b) aperson’schildandthechildofhisorherspouse;
(c) anyothermemberofaperson’sfamilyinrespectofwhomheorsheis
liableforfamilycareandsupport;and
(d) any other person who is recognised as a dependant of that person in
termsoftherulesofamedicalschemeorfundcontemplatedinsection 50
6A(2)(a)(i)or(ii),