The Interpretation Notes (INs) on this page are older versions of the existing ones, which had been either replaced or withdrawn. They are intended for research and reference purposes only and should not be relied on to make decisions on current legislation.
Interpretation Notes that are still in operation can be found under Interpretation and Rulings –> Interpretation Notes.
| IN Number | Subject and Previous Issues | Applicable Legislation | |||||
|---|---|---|---|---|---|---|---|
| IN 1 | Provisional tax estimates | Income Tax Act, 1962 | Paragraphs 17 to 27 of the Fourth Schedule | ||||
| IN 2 | Foreign dividends: Deductibility of interest
| Income Tax Act, 1962 | Section 11C | ||||
| IN 3 | Resident: Definition in relation to a natural person – ordinarily resident | Income Tax Act, 1962 | Section 1 | ||||
| IN 4 | Resident: Definition in relation to a natural person – physically present | Income Tax Act, 1962 | Section 1 | ||||
| IN 5 | Employees’ Tax: Directors of private companies (which include persons in close corporations who perform functions similar to directors of companies)
| Income Tax Act, 1962 | Paragraphs 1, 9(5) and 11C of the Fourth Schedule | ||||
| IN 6 | Resident: Place of effective management (persons other than natural persons) | Income Tax Act, 1962 | Section 1(1) | ||||
| IN 8 | Insolvent estates | Income Tax Act, 1962 | Section 25C | ||||
| IN 9 | Small Business Corporations | Income Tax Act, 1962 | Section 12E | ||||
| IN 10 | Skills development levy exemption: Public benefit organisations | Skills Development Levies Act, 1999 | Section 4(c) | ||||
| IN 11 | Trading Stock: Assets not used as trading stock | Income Tax Act, 1962 | Sections 1 and 22 From Issue 2: | ||||
| IN 12 | Recoupment: Assets in a deceased estate
| Income Tax Act, 1962 | Sections 8(4) and 25(1) | ||||
| IN 13 | Deductions: Limitation of deductions for employees and office holders | Income Tax Act, 1962 | Section 23(m) | ||||
| IN 14 | Allowances, advances and reimbursements | Income Tax Act, 1962 |
From Issue 3: | ||||
| IN 15 | Exercise of discretion in case of late objection or appeal | Tax Administration Act, 2011 | Sections 104, 106 and 107 | ||||
| IN 16 | Exemption from income tax: foreign employment income | Income Tax Act, 1962 | Section 10(1)(o)(ii) | ||||
| IN 17 | Employees Tax: Independent contractors | Income Tax Act, 1962 | Fourth Schedule | ||||
| IN 18 | Rebate and deduction for foreign taxes on income | Income Tax Act, 1962 | Section 6quat Title changed from Issue 2 Sections 6quin and 64N added to Issue 3 | ||||
| IN 19 | Year of assessment: Accounts accepted to date other than the last day of February | Income Tax Act, 1962 | Section 1 – definition of “year of assessment”, sections 5, 66(13A) and (13B) and 89quat and paragraph 21 of the Fourth Schedule | ||||
| IN 20 | Additional deduction for learnership allowance | Income Tax Act, 1962 | Section 12H | ||||
| IN 22 | Exemption: Public Benefit Organisations and Statutory Bodies | Transfer Duty Act, 1949 | Section 9(1)(c) and (1A) | ||||
| IN 23 | Estimated assessments (foreign funds or assets) | Income Tax Act, 1962 | Section 78(1A), (1B) and (1C) | ||||
| IN 24 | Public Benefit Organisations: Trading rules – partial taxation of trading receipts | Income Tax Act, 1962 | Section 10(1)(cN) | ||||
| IN 25 | Resident: Definition in relation to a natural person – application of the physical presence test in the year of death or insolvency | Income Tax Act, 1962 | Section 1 – definition of “resident” | ||||
| IN 27 | Personal liability of employers, representative employers, shareholders and directors for outstanding employees’ tax
| Income Tax Act, 1962 | Fourth Schedule | ||||
| IN 28 | Deductions: Home office expenses incurred by persons in employment or persons holding an office | Income Tax Act, 1962 | Sections 11(a), 23(b) and (m) | ||||
| IN 29 | Farming operations: Equalised rates of tax | Income Tax Act, 1962 | Section 5(10) Paragraph 19 of the First Schedule | ||||
| IN 30 | Documentary proof required on consignment of delivery of movable goods to a recipient at an address in an export country
| Value-Added Tax Act, 1991 | Section 1 – paragraph (a) of the definition of “exported” Sections 11(1)(a)(i) and 11(3) | ||||
| IN 31 | Documentary proof required for the zero-rating of goods and services | Value-Added Tax Act, 1991 | Section 11(3) | ||||
| IN 32 | Public Benefit Organisations: Prudent investments (Refer to section 24(d) of Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006) | Income Tax Act, 1962 | Section 30(3)(b)(11)(cc) | ||||
| IN 33 | Assessed losses: Companies – The “trade” and “income from trade” requirements | Income Tax Act, 1962 | Section 20(1)(a) | ||||
| IN 34 | Exemption from income tax : remuneration derived by a person as an officer or crew member of a ship | Income Tax Act, 1962 | Section (1)(o)(i) | ||||
| IN 35 | Employees’ Tax: Personal service providers and labour brokers | Income Tax Act, 1962 | Paragraphs 1, 1(1A) and 2(5) of the Fourth Schedule and section 23(k) | ||||
| IN 36 | Scope and impact of section 76I upon written statements issued by the Commissioner prior to 1 October 2006 | Income Tax Act, 1962 | Section 76I | ||||
| IN 37 | Procedures for requesting binding effect in respect of written statements issued by the Commissioner prior to 1 October 2006 | Income Tax Act, 1962 | Section 76I(4) and (5) | ||||
| IN 38 | Application and cost recovery fees for binding private rulings | Income Tax Act, 1962 | Section 76 F | ||||
| IN 39 | VAT treatment of public authorities, grants and transfer payments
| Value-Added Tax Act, 1991 | Sections 1, 8, 11, 16, 18, 23 and 40A | ||||
| IN 40 | VAT treatment of the supply of goods and/or services to and/or from a customs controlled area of an industrial development zone | Value-Added Tax Act, 1991 | Sections 1, 7, 8, 9, 10, 11, 13, 19 Item 498.00 in paragraph 8 of Schedule 1 | ||||
| IN 41 | Application of VAT to the gambling industry | Value-Added Tax Act, 1991 | Sections 1, 8(13) and (13A), 9(3)(e), 16(3)(a), (d) and (e), 17(2)(a) and (c), 72 | ||||
| IN 42 | The supply of goods or services by the travel and tourism industry | Value-Added Tax Act, 1991 | Sections 1, 7 and 11 | ||||
| IN 43 | Circumstances in which amounts received or accrued on disposal of listed shares are deemed to be of a capital nature | Income Tax Act, 1962 | Section 9B Section 9C (as from Issue 3) | ||||
| IN 44 | Public Benefit Organisations: Capital Gains Tax (CGT) | Income Tax Act, 1962 | Paragraph 63A of the Eighth Schedule | ||||
| IN 45 | Deduction of Security Expenditure | Income Tax Act, 1962 | Sections 11(a) and (e), 22(8), 23(b) and (g), 24D and paragraphs 20 and 53 of the Eighth Schedule | ||||
| IN 46 | Amalgamation of amateur and professional sporting bodies
| Income Tax Act, 1962 | Sections 10(1)(cN), 11, 11E and 30 as amended | ||||
| IN 47 | Wear-and-tear or depreciation allowance | Income Tax Act, 1962 | Section 11(e) | ||||
| IN 48 | Instalment Credit Agreements and Debtors’ Allowance | Income Tax Act, 1962 | Section 24 | ||||
| IN 49 | Documentary proof required to substantiate a vendor’s entitlement to “input tax” or a deduction as contemplated in section 16(2) 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, 1991 | Section 1 – definition of the term “input tax; read with section 16(1), (2) and (3) | ||||
| IN 51 | Pre-trade expenditure and losses | Income Tax Act, 1962 | Sections 11, 11A and 23 | ||||
| IN 52 | Tax periods | Value-Added Tax Act, 1991 | Section 27(6); proviso (ii) and proviso (iii) | ||||
| IN 53 | Limitation of allowances granted to lessors of affected assets | Income Tax Act, 1962 | Section 23A | ||||
| IN 54 | Deductions – Corrupt Activities Fines and Penalties | Income Tax Act, 1962 | Section 23(o)(i) and (ii) | ||||
| IN 55 | Taxation of directors and employees on vesting of equity instruments | Income Tax Act, 1962 | Sections 8C and 10(1)(nD) Paragraph 11A of the Fourth Schedule Paragraph 2(a) of the Seventh Schedule | ||||
| IN 56 | Recipient-created tax invoices, credit and debit notes | Value-Added Tax Act, 1991 | Sections 20(2) and 21(4) | ||||
| IN 58 | The Brummeria case and the right to use loan capital interest free | Income Tax Act, 1962 | Section 1 – definition of “gross income” | ||||
| IN 59 | Tax implications of the receipt or accrual of government grants and government scrapping payments | Income Tax Act, 1962 | Section 1 – Definition of “gross income”, sections 10 Title change from Issue 2 to “Tax Treatment of the Receipt or Accrual of Government Grants” | ||||
| IN 60 | Loss on disposal of depreciable assets | Income Tax Act, 1962 | Sections 11(o), 20B and 24M | ||||
| IN 63 | Rules for the translation of amounts measured in foreign currencies | Income Tax Act, 1962 | Sections 1, 6quat, 9A, 9D(6), 9G and 25D | ||||
| IN 64 | Income Tax exemption: Bodies Corporate established under the Sectional Titles Act, No. 95 of 1986, Share Block Companies established under the Share Blocks Control Act, No. 59 of 1980 and Associations of persons managing the collective interests common to all members | Income Tax Act, 1962 | Section 10(1)(e) | ||||
| IN 65 | Trading Stock: Inclusion in income when applied, distributed or disposed of otherwise than in the ordinary course of trade | Income Tax Act, 1962 | Section 22(8) | ||||
| IN 67 | Connected persons | Income Tax Act, 1962 | Section 1 – definition of “connected person” | ||||
| IN 68 | Provisions of the Tax Administration Act, 2011, that did not commence on 1 October 2012 under Proclamation 51 in Government Gazette 35687 | Tax Administration Act, 2011 | Chapter 12 and Schedule 1 | ||||
| IN 69 | Game farming | Income Tax Act, 1962 | Section 26 and First Schedule | ||||
| IN 70 | Supplies made for no consideration | Value-Added Tax Act, 1991 | Section 1 Definitions of “enterprise”, “taxable supply”, “input tax”, “donation” and “consideration”, section 10(4) and 10(23) | ||||
| IN 73 | Tax implications of rental income from tank containers | Income Tax Act, 1962 | Sections 11(a), 11(e), 20(1), 23A and 25D | ||||
| IN 74 | Deduction and recoupment of expenditure on repairs | Income Tax Act, 1962 | Sections 22(d) and 8(4)(a) | ||||
| IN 75 | Exclusion of certain companies and shares from a “group of companies” as defined in section 41(1) | Income Tax Act, 1962 | Sections 1(1) and 41(1) | ||||
| IN 79 | Produce held by nursery operators | Income Tax Act, 1962 | Sections 25, 25C and 26 and Paragraphs 2, 3, 4 and 9 of the First Schedule and Paragraph 40 of the Eighth Schedule | ||||
| IN 81 | Supply of goods and services by professional hunters and taxidermists to non-residents | Value-Added Tax Act, 1991 | Sections 7(1)(a), 11(1)(a) and 11(2)(l) | ||||
| IN 83 | Application of sections 20(7) and 21(5) | Value-Added Tax Act, 1991 | Sections 20(4), (5), (7), 21(1) and (5) | ||||
| IN 86 | Additional investment and training allowances for industrial policy projects | Income Tax Act, 1962 | Section 12I | ||||
| IN 87 | Headquarter companies | Income Tax Act, 1962 | From Issue 2 Sections 1(1) – Definition of “headquarter company” and 9I, 6quat(1A) and (1C), 9D(2), 9H, 9I, 10(1)(k)(i), 10B, 20C, 24I(3), 25D(4) and (7), 31(5), 41(1) – Definition of “company”, 49D(c), | ||||
| IN 90 | Year of assessment of a company: Accounts accepted to a date other than the last day of a company’s financial year | Income Tax Act, 1962 | Sections 1(1), Definition of “financial year” and “year of assessment”, 5, 66(13C), 89quat(1) and paragraph 23 of the Fourth Schedule | ||||
| IN 91 | Reduction of debt | Income Tax Act, 1962 | Section 19 and paragraph 12A of the Eighth Schedule | ||||
| IN 93 | The taxation of foreign dividends | Income Tax Act, 1962 | Sections 1(1) – Definition of “foreign dividend”, 6quat, 9(4)(a), 9D(9)(f), and 10B, 22(3)(a)(iii), 23(f), 23(q) and 25D and paragraph 20(1)(h)(iii) of the Eighth Schedule | ||||
| IN 95 | Deduction for energy-efficiency savings | Income Tax Act, 1962 | Section 12L | ||||
| IN 97 | Taxation of REITs and controlled companies | Income Tax Act, 1962 | Sections 1(1) – Definition of “REIT”, and 25BB | ||||
| IN 99 | Unclaimed benefits | Income Tax Act, 1962 | Paragraph 4(1) of the Second Schedule | ||||
| IN 101 | Section 24I – Gains or losses on foreign exchange transactions | Income Tax Act, 1962 | Sections 24I and sections 1(1) – definition of “trading stock”, 3(4)(b), 6quat(4), 8(4)(a), 9(2)(l), 9(4)(e), paragraph (c)(ii) and (iii) of the proviso to section 9D(2A), 9D(6), 9D(9)(fA)(ii) and (iii), 9D(9a)(a)(iii), 11(a), 11(i), 11(j), 19, 20(2), 22(3)(a)(i), 24J(2), (3) and (5A) and 25D, paragraphs 12A, 35(3)(a) and 43 of the Eighth Schedule and paragraph 4(1) of the Tenth Schedule | ||||
| IN 102 | Classification of risk policy and the once-off election to transfer certain policies or classes of policies issued before 2016 to the Risk Policy Fund | Income Tax Act, 1962 | Section 29A Title change from Issue 2 to “Classification of Risk Policy” | ||||
| IN 106 | Deduction in respect of certain residential units | Income Tax Act, 1962 | Section 13sex | ||||
| IN 107 | Deduction in respect of commercial buildings | Income Tax Act, 1962 | Section 13quin | ||||
| IN 109 | Lease premiums | Income Tax Act, 1962 | Paragraph (g) of the definition of “gross income” and section 11(f) and (h) | ||||
| IN 110 | Leasehold improvements | Income Tax Act, 1962 | Paragraph (h) of the definition of “gross income” and section 11(g) and (h) | ||||
| IN 112 | Section 18A – Audit certificate | Income Tax Act, 1962 | Section 18A(2B) and (2C) | ||||
| IN 115 | Withholding tax on interest | Income Tax Act, 1962 | Sections 50A to 50H | ||||
