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 61Remission of interestValue-Added Tax Act, 1991Section 39(7)(a)
IN 62Broad-based employee share planIncome Tax Act, 1962Sections 8B, 10(1)(nC) and 11(lA)
IN 63
(Issue 2)
Rules for the translation of amounts measured in foreign currencies other than exchange differences governed by section 24I and the Eighth ScheduleIncome Tax Act, 1962Sections 1(1), 6quat(4) and (4A), 6quin(4), 9A, 9D(6), 25D, 35A(5), 47J, 49H, 50H, 51H and 64N(4)
(Issue 4)
Income tax exemption: Bodies Corporate, Share Block Companies and Associations of persons managing the collective interests comment to all membersIncome Tax Act, 1962Section 10(1)(e)
IN 65
(Issue 3)
Trading stock – Inclusion in income when applied, distributed or disposed of otherwise than in the ordinary course of
Income Tax Act, 1962Section 22(8)
IN 66Scholarships or bursariesIncome Tax Act, 1962Section 10(1)(q) and the Seventh Schedule
IN 67
(Issue 4)
Connected personsIncome Tax Act, 1962Section 1(1) – definition of “connected person”
IN 68 (Issue 3)Provisions of the Tax Administration Act, 2011, that did not commence on 1 October 2012 under Proclamation No. 51 in Government Gazette 35687Tax Administration Act, 2011Chapter 12 and Schedule 1
IN 69
(Issue 3)
Game farmingIncome Tax Act, 1962Sections 9HA, 25, 25C, 26 and First Schedule
IN 70 (Issue 2)Supplies made for no considerationValue-Added Tax Act, 1991
Section 1 Definitions of “enterprise”, “taxable supply”, “input tax”, “donation” and “consideration”, section 10(4) and
IN 71Long service awardsIncome Tax Act, 1962
Paragraphs 2(a),
5(2)(b) and 5(4) of the Seventh Schedule
IN 72Right of use of motor vehicleIncome Tax Act, 1962Paragraph 7 of the Seventh Schedule
IN 73
(Issue 3)
Tax implications of rental income from tank containersIncome Tax Act, 1962Sections 11(a), 11(e), 20(1), 23A and 25D
IN 74
(Issue 3)
Deduction and recoupment of expenditure on repairsIncome Tax Act, 1962Sections 11(d) and
IN 75
(Issue 4)
Exclusion of certain companies and shares from a “group of companies” as defined in section 41(1)Income Tax Act, 1962Sections 1 and 41(1)

IN 76


Tax treatment of tips for recipients, employers and patronsIncome Tax Act, 1962

Section1(1) – definition of the term “gross income”

Fourth Schedule – paragraph 1 definitions of “remuneration”, “employer”, “employee”, “provisional taxpayer”; paragraph 2(1)

IN 77Taxable benefit: Use of employer-provided telephone or computer equipment or employer-funded telecommunication servicesIncome Tax Act, 1962Paragraph 2(b), (e) and (h); Paragraphs 6, 10 and 31(1) of the Seventh Schedule
IN 78Allowance for future expenditure on contractsIncome Tax Act, 1962Section 24C
IN 79
(Issue 3)

Produce held by nursery operators

Income Tax Act, 1962Sections 9A, 25, 25C and 26 and Paragraphs 2, 3, 4 and 9 of the First Schedule
IN 80The income tax treatment of stolen moneyIncome Tax Act, 1962Sections 11(a) and (c), 23 (c) and (g) and
1(1) – definition of “gross income”

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