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.
NumberDescriptionApplicable Legislation
IN 60 (Issue 2)Loss on disposal of qualifying depreciable assetsIncome Tax Act, 1962Sections 11(o), 20B and 24M(1)
IN 59 (Issue 2)Tax treatment of the receipt or accrual of government grantsIncome Tax Act, 1962Section 1, definition of “gross income”; 12P and Eleventh Schedule
IN 58
(Issue 3)
The Brummeria case and the right to use loan capital interest freeIncome Tax Act, 1962Section 1, definition of “gross income”
IN 57Sale of an enterprise or part thereof as a going concernValue-Added Tax Act, 1991
Sections 8(7), 8(16),
11(1)(e) and 18A
IN 56 
(Issue 2)
Recipient-created tax invoices; credit and debit notesValue-Added Tax Act, 1991
Sections 20(2) and
IN 55
(Issue 2)

Taxation of directors and employees on vesting of equity instruments

Income Tax Act, 1962
Sections 8C and
paragraph 11A of the Fourth Schedule;
paragraph 2(a) of the Seventh Schedule
IN 54
(Issue 2)

Deductions – Corrupt activities, fines and penalties

Income Tax Act, 1962Section 23(o)(i) and (ii)
IN 53
(Issue 3)
Limitation of allowances granted to lessors of affected assetsIncome Tax Act, 1962Section 23A

IN 52
(Issue 3) 

Approval to end a tax period on a day other than the last day of a month

Value-Added Tax Act, 1991Section 27(6) – 
proviso (ii) and
 proviso (iii)
IN 51
(Issue 6)
Pre-trade expenditure and lossesIncome Tax Act, 1962Sections 11, 11A and 23
IN 50Deduction for scientific or technological research and developmentIncome Tax Act, 1962Section 11D
IN 49
(Issue 2)

Documentary proof required to substantiate a vendor’s entitlement to “input tax” or a deduction as contemplated in section 16(2)

Archived on 1 April 2016
– The Interpretation Note will be incorporated into an Interpretation Note setting out the required documentary proof to be obtained and retained by a vendor to substantiate the vendor’s entitlement to a deduction under section 16(3)(c)-(n).
Value-Added Tax Act, 1991Section 1, definition of “input tax”‘ read with section 16(1) to (3)
IN 48 
(Issue 3)
Instalment credit agreements and debtors’ allowanceIncome Tax Act, 1962Section 24
IN 47
(Issue 5)

Wear-and-tear or depreciation allowance

Income Tax Act, 1962Section 11(e)
IN 46
(Issue 4)

Amalgamation of amateur and professional sporting bodies

Archived on 23 June 2015The conditions and requirements relating to the amalgamation transactions as explained in the Note are no longer relevant as the period within which the amalgamation transaction had to be concluded, has lapsed.

Income Tax Act, 1962Sections 10(1)(cN), 11, 11E and 30

IN 45
(Issue 3)

Deduction of security expenditure

Income Tax Act, 1962Sections 11(a) and (e), 18A, 22(8), 23(b) and (g), 24D,  
paragraphs 2(a), (b), (e), (f) and (h) of the Seventh Schedule, paragraphs 20 and 53 of the Eighth Schedule and Part II of the Ninth Schedule
IN 44
(Issue 3)
Public benefit organisations (PBOs): Capital gains tax (CGT)Income Tax Act, 1962Paragraph 63A of the Eighth Schedule
IN 43
(Issue 8)
Circumstances in which certain amounts received or accrued from the disposal of shares are deemed to be of a capital natureIncome Tax Act, 1962Section 9C
IN 42
(Issue 2)
The supply of goods and/or services by the travel and tourism industryValue-Added Tax Act, 1991Sections 7(1)(a), 
11(1)(a) and 11(2)(l)
IN 41
(Issue 3)
Application of the VAT Act to the gambling industryValue-Added Tax Act, 1991

Sections 1(1), 8(13), 
8(13A), 9(3)(e),

16(3)(a), (d) and (e), 17(2)(a), (c) and 72

Table of Contents

Last Updated: