IN 1 - 20 | South African Revenue Service

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 are amended when necessary in line with policy developments and changes in legislation, and 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.

For an overview of all interpretation notes published to date, see the Register of all Interpretation Notes.

Number	Subject	Applicable Legislation
IN 20 (Issue 9) New!	Additional deduction for learnership allowance	Income Tax Act, 1962	Section 12H
IN 19 (Issue 5)	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 66(13A)
IN 18 (Issue 5)	Rebate and deduction for foreign taxes on income Interpretation Note 18 “Rebate and Deduction for Foreign Taxes on Income” explains the scope, interpretation and application of section 6quat which provides for a rebate or deduction for foreign taxes on income. The Interpretation Note has been updated for legislative changes, an expanded view on the interpretation of “other than taxes contemplated in (1A)” in section 6quat(1C)(a) [with the result that certain foreign taxes on income from a foreign source may qualify for a deduction in circumstances where the specified requirements are met (see paragraph 6 of the Note for detail)], and other minor clarifications.	Income Tax Act, 1962	Section 6quat
IN 17 (Issue 5)	Employees’ tax: Independent contractors	Income Tax Act, 1962	Fourth Schedule
IN 16 (Issue 4)	Exemption from income tax: Foreign employment income	Income Tax Act, 1962	Section 10(1)(o)(ii)
IN 15 (Issue 6)	Exercise of discretion to extend the period to lodge an objection or appeal Title/subject change from issue 6 onwards	Tax Administration Act, 2011	Sections 104 and 107
IN 14 (Issue 5)	Allowances, advances and reimbursements	Income Tax Act, 1962	Section 8(1)(a), (b) and (c) and paragraph 1 of the Fourth Schedule
IN 13	Deductions: Limitation of deductions for employees and office holders	Income Tax Act, 1962	Section 23(m)
IN 12	Recoupment: Assets in a deceased estate Archived on 4 March 2021 – The legislative provisions dealing with deceased estates in the Income Tax Act, 1962 has been amended with effect from 1 March 2016	Income Tax Act, 1962	Sections 8(4) and 25(1)
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 10 (Issue 4)	Skills development levy exemption: Public benefit organisations	Skills Development Levies Act, 1999	Section 4(c)
IN 9 (Issue 7)	Small business corporations	Income Tax Act, 1962	Section 12E
IN 8 (Issue 3)	Insolvent estates of natural persons	Income Tax Act, 1962	Section 25C
IN 7	Restraint of trade payments	Income Tax Act, 1962	Sections 1, 11(cA), and 23(l)
IN 6 (Issue 3)	Resident: Place of effective management (companies)	Income Tax Act, 1962	Section 1(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 4 (Issue 5)	Resident: Definition in relation to a natural person – physical presence test	Income Tax Act, 1962	Section 1(1)
IN 3 (Issue 2)	Resident: Definition in relation to a natural person – ordinarily resident	Income Tax Act, 1962	Section 1(1)
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 1 (Issue 3)	Provisional tax estimates	Income Tax Act, 1962	Paragraphs 17 to 27 of the Fourth Schedule

IN 1 – 20

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