Visit the national COVID-19 Online Resource and News Portal at or see SARS COVID-19 news items and tax relief measures here.

IN 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.​
Number​​Subject​Applicable Legislation
IN 1
(Issue 3)
​Provisional tax estimates​Income 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Archived on 11 February 2016 – Section 11C was repealed with effect from 1 April 2012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, 1962​​​Section 1(1)
IN 4 
(Issue 5) 
​Resident: Definition in relation to a natural person – physical presence test​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Archived on 6 March 2017 – Paragraph 11C of the Fourth Schedule was repealed with effect from 1 March 2017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 6
(Issue 2)
​Resident: Place of effective management (companies)​Income Tax Act, 1962​Section 1(1)​​
IN ​7​Restraint of trade paymentsIncome Tax Act, 1962​Sections 1, 11(cA) and 23​(l)
IN 8 
(Issue 3)​
​Insolvent estates of natural persons​​​Income Tax Act, 1962Section 25C​
IN 9 
(Issue 7)
​Small business corporationsIncome Tax Act, 1962​Section 12E​
​​IN 10 
(Issue 3)
​Skills development levy exemption: Public benefit organisationsSkills Development Levies Act, 1999​​Section 4(c)​
IN 11 
(Issue 4)
​Trading stock: Assets not used as trading stockIncome Tax Act, 1962​​Paragraph (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, 1962​​Sections 8(4) and
IN 13​Deductions: Limitation of deductions for employees and office holdersIncome Tax Act, 1962​​Section 23(m)
IN ​14
(Issue 5)
​Allowances, advances and reimbursementsIncome Tax Act, 1962​Section 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, 2011​Sections 104 and 107​
​​​IN 16
(Issue 3)
​Exemption from income tax: Foreign employment incomeIncome Tax Act, 1962​​Section 10(1)(o)(ii)​
IN 17
(Issue 5)
​Employees’ tax: Independent contractorsIncome Tax Act, 1962​Fourth Schedule​
​​IN 18
(Issue 4)
​Rebate and deduction for foreign taxes on income ​Income Tax Act, 1962​​Sections 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, 1962​​Sections 66(13A)
IN 20
(Issue 7)
​Additional deduction for learnership allowance ​Income Tax Act, 1962Section 12H​

Table of Contents

Last Updated:

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on print