Interpretation Notes - numbers 1-20

Interpretation Notes are intended to provide guidelines to stakeholders (both internal and external) on the interpretation and application of the provisions of the legislation administered by the Commissioner.
These Notes will ultimately replace the existing General Notes and Practice Notes, as well as internal Circular Minutes, to the extent that they relate to the interpretation of the various laws. The Notes will be amended when necessary in line with policy developments and changes in legislation.​
The groups of Interpretation Notes can be accessed from here or on the navigation pane above:




Number​ ​Subject ​Applicable Legislation
IN 1
(Issue 2)
​Provisional tax estimates ​Income Tax Act, 1962 Paragraphs 17 to 27 of the Fourth Schedule​
IN 2
(Issue 3)​
​Foreign dividends - deductibility of interest

Archived on 11 February 2016 – Section 11C was repealed with effect from 1 April 2012
Income Tax Act, 1962 Section 11C​
​​IN 3 ​Resident: Definition in relation to a natural person - ordinarily resident Income Tax Act, 1962​ ​​Section 1
IN 4 
(Issue 4) 
​Resident: Definition in relation to a natural person - physical presence test ​Income Tax Act, 1962 ​Section 1
​IN ​5
(Issue 2)
​Employees' tax: Directors of private companies (which include persons in close corporations who perform functions similar to directors of companies)

Archived on 6 March 2017 – Paragraph 11C of the Fourth Schedule was repealed with effect from 1 March 2017
Income Tax Act, 1962​ Paragraphs 1, 9(5) and 11C of the Fourth Schedule​
IN 6 ​Resident: Place of effective management (persons other than natural persons) Income Tax Act, 1962​ Section 1​
IN 6
(Issue 2)
​Resident: Place of effective management (companies) ​Income Tax Act, 1962​ Section 1(1)​​
IN ​7 ​Restraint of trade payments Income Tax Act, 1962​ Sections 1, 11(cA) and 23​(l)
IN 8 
(Issue 3)​
​Insolvent estates of natural persons ​​​Income Tax Act, 1962 Section 25C​
IN 9 
(Issue 6)
​Small business corporations Income Tax Act, 1962​ Section 12E​
​​IN 10 
(Issue 2)
​Skills development levy exemption: Public benefit organisations Skills Development Levies Act, 1999​ ​Section 4(c)​
IN 11 
(Issue 4)
​Trading stock: Assets not used as trading stock Income Tax Act, 1962​ ​Paragraph (jA) of the definition of "gross income" in section 1(1)
IN 12 ​Recoupment: Assets in a deceased estate Income Tax Act, 1962​ ​Sections 8(4) and
IN 13 ​Deductions: Limitation of deductions for employees and office holders Income Tax Act, 1962​ ​Section 23(m)
IN ​14
(Issue 3)​
​Allowances, advances and reimbursements Income Tax Act, 1962​ Section 8(1)(a) and (c)​
IN 15
(Issue 4)
​Exercise of discretion in case of late objection or appeal  Tax Administration Act, 2011​ Sections 104 and 107​
​​IN 16
(Issue 2)
​Exemption from income tax: Foreign employment income Income Tax Act, 1962​ ​Section 10(1)(o)(ii)​
IN 17
(Issue 3)
​Employees' tax: Independent contractors Income Tax Act, 1962​ Fourth Schedule​
​​IN 18
(Issue 3)
​Rebate or deduction for foreign taxes on income  ​Income Tax Act, 1962 ​​Sections 6quat, 6quin and 64N
IN 19
(Issue 4)​
​Year of assessment of natural persons and trusts: Accounts accepted to a date other than the last day of February Income Tax Act, 1962​ ​Section 1 - definition of "year of assessment", sections 5, 66(13A) and (13B) and 89quat and
paragraph 21 of the Fourth Schedule
IN 20
(Issue 7)
​Additional deduction for learnership allowance  ​Income Tax Act, 1962 Section 12H​


Last Updated: 12/10/2017 3:33 PM     print this page
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