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.
NumberSubjectApplicable Legislation
IN 1
(Issue 3)
Provisional tax estimatesIncome Tax Act, 1962Paragraphs 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Archived on 11 February 2016 – Section 11C was repealed with effect from 1 April 2012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, 1962Section 11C
IN 3
(Issue 2)
Resident: Definition in relation to a natural person – ordinarily residentIncome Tax Act, 1962Section 1(1)
IN 4 
(Issue 5) 
Resident: Definition in relation to a natural person – physical presence testIncome Tax Act, 1962Section 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Archived on 6 March 2017 – Paragraph 11C of the Fourth Schedule was repealed with effect from 1 March 2017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, 1962Paragraphs 1, 9(5) and 11C of the Fourth Schedule
IN 6
(Issue 3)
Resident: Place of effective management (companies)Income Tax Act, 1962Section 1(1)
IN 7Restraint of trade paymentsIncome Tax Act, 1962Sections 1, 11(cA) and 23(l)
IN 8 
(Issue 3)
Insolvent estates of natural personsIncome Tax Act, 1962Section 25C
IN 9 
(Issue 7)
Small business corporationsIncome Tax Act, 1962Section 12E
IN 10 
(Issue 4)
Skills development levy exemption: Public benefit organisationsSkills Development Levies Act, 1999Section 4(c)
IN 11 
(Issue 4)
Trading stock: Assets not used as trading stockIncome Tax Act, 1962Paragraph (jA) of the definition of “gross income” in section 1(1)
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, 1962Sections 8(4) and
IN 13Deductions: Limitation of deductions for employees and office holdersIncome Tax Act, 1962Section 23(m)
IN 14
(Issue 5)
Allowances, advances and reimbursementsIncome Tax Act, 1962Section 8(1)(a), (b) and (c) and paragraph 1 of the Fourth Schedule
IN 15
(Issue 5)
Exercise of discretion in case of late objection or appeal Tax Administration Act, 2011Sections 104 and 107
IN 16
(Issue 4)
Exemption from income tax: Foreign employment incomeIncome Tax Act, 1962Section 10(1)(o)(ii)
IN 17
(Issue 5)
Employees’ tax: Independent contractorsIncome Tax Act, 1962Fourth Schedule
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, 1962Sections 6quat
IN 19
(Issue 5)
Year of assessment of natural persons and trusts: Accounts accepted to a date other than the last day of FebruaryIncome Tax Act, 1962Sections 66(13A)
IN 20
(Issue 8)
Additional deduction for learnership allowance Income Tax Act, 1962Section 12H

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