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Practice Notes

The Practice Notes in this Archive have been either withdrawn or replaced and are only intended for reference and/or research purposes.

Practice Notes that are still effective, can be found under Interpretation & Rulings > Practice Notes.

Notices of Withdrawal of Practice Notes

Retirement Fund Practice Notes

Practice Note
Reference Number
History
Description Notes
2011
RF 1/2011

Issued on 01/03/2011

——————

Implemented with effect from 30/09/2010

——————-

Withdrawn with effect from 05/11/2012

Conditions for pension preservation funds RF 1/2011 was withdrawn by RF 1/2012 with effect from 5 November 2012
2004
RF 1/2004

Issued on 24/03/2004

——————-
Withdrawn with effect from 07/06/2016
Payment of annuities in arrear RF 1/2004 was wihdrawn with effect from 7 June 2016 due to legislative amendments to paragraph 4(1) of the Second Schedule to the Income Tax Act, 1962

1998
Issued on 30/11/1998
——————-
Withdrawn with effect from 30/09/2010
Funds for the preservation of the retirement interests of employees
  • Addendum A
  • Addendum B
  • Addendum C (not available)
  • Addendum D (not available)
  • Addendum E (not available)
RF 1/1998, as well as its Addenda, was withdrawn by RF 1/2011 with effect from 30 September 2010

1996
RF 1/1996

Issued in June 1996

——————

Replaced with effect from 01/03/2008

Calculation of flexible annuity benefits

RF 1/1996, and its Addenda, was replaced by the insertion of the definition of “living annuity” in section 1 of the Income Tax Act, 1962, with effect from 1 March 2008

Income Tax Practice Notes

These Practice Notes were issued under the Income Tax Act, 1962

Practice Note
Reference Number
History
Description Notes
2001
Issued on 26/03/2001
—————-
Replaced with effect from 22/02/2012
Exemption from income tax in terms of s.10(1)(e)
Replaced by Interpretation Note 64 (Issue 1) with effect from 22 February 2012
1999
4 of 1999
Issued on 08/03/1999
—————–
Replaced with effect from 04/07/2018
Treatment of gains and losses on foreign exchange transactions Replaced by Interpretation Note 101 with efffect from 4 July 2018
6 of 1999

Issued on 30/07/1999

—————–

Replaced with effect from 12/02/2013

Game Farming Replaced by Interpretation Note 69 with effect from 12 February 2013
1996
1 of 1996

Issued on

04/04/1996

——————–

Withdrawn on

18/08/2015

Provision for ship repairs in terms of section 14(1)(c) in the Income Tax Act, 1962

Section 14(1)(c) had been repealed by Taxation Laws Amendment Act No. 31 of 2013.

This provision has therefore become obsolete

2 of 1996
Issued on
14/05/1996
——————–
Withdrawn on
05/08/2019, with effect from years of assessment commencing on or after 1 April 2012
Income Tax: Determination of taxable income where financial assistance has been granted by a non-resident of the Republic to a resident of the Republic

Section 31 was substituted by the Taxation Laws Amendment Act, 2011 with effect from years of assessment commencing on or after 1 April 2012.

As this Practice Note and its Addendum of 17 May 2002 gave guidance on section 31(3) before it was substituted they are not applicable from the date of substitution and are accordingly withdrawn for years of assessment commencing on or after 1 April 2012.

1995
43 of 1995

Issued on

20/12/1995

——————

Withdrawn on 18/08/2015

Treatment of certain types of policy loans Section 29 had been repealed by Revenue Laws Amendment Act No. 20 of 2006, therefore this provision has become obsolete
1994
32 of 1994 

Issued on 07/10/1994

—————–

Replaced with effect from 22/09/2014

Valuation of Stock: Nurserymen Replaced by Interpretation Note 79 with effect from 22 September 2014
23 of 1994

Issued on 17/06/1994

——————

Withdrawn on 18/08/2015

Taxation of trusts and trust beneficiaries – section 25B

Section 25B had been substituted by section 27(1) of Revenue Laws Amendment Act 32 of 2004 with effect from the years of assessment ending on or after 24 January 2005.

Therefore, the provision has become obsolete.

1993
16 of 1993 

Issued on 12/03/1993

——————-

Withdrawn with effect from the commencement of years of assessement ending on or after
01/01/2012

Deduction in terms of s.12C in respect of certain foundations or supporting structures
This Note is obsolete in view of the amendment to section 12C by the Taxation Laws Amendment Act, 2011 and is withdrawn with effect from the commencement of years of assessment ending on or after 1 January 2012
Refer to the Notice of Withdrawal of Practice Notes dated 1 January 2012
1988
8 of 1988 
Issued on 30/12/1988
——————
Withdrawn with effect from the commencement
of years of
assessment
ending on or after
01/01/2010

Deduction in respect of finance charges under section 11(bB)
Section 11(bB) was deleted by
section 14(1)(a) of the Taxation Laws Amendment Act No. 17 of 2009. This provision is repealed because it is obsolete in view of the enactment of s.24J.
The withdrawal of this Note is the same as the effective date of the deletion of s.11(bB), namely from the commencement of years of assessment ending on or after 1 January 2010.
Refer to the Notice of Withdrawal of Practice Notes dated 1 January 2012

Value-Added Tax (VAT) Practice Notes

These Practice Notes were issued under the Value-Added Tax Act, 1991.

Practice Note
Reference Number
History Description Notes
2001
1 of 2001

Issued on 31/07/2001

—————-

Withdrawn with effect from 01/04/2016

Insurance indemnity payments

Section 8(8)

Specific supplies in the short-term insurance industry, including deemed supplies in respect of insurance indemnity payments are dealt with in the VAT 421 – Guide for Short-Term Insurance and Binding General Ruling No. 14 –
VAT Treatment of Specific Supplies in the Short-Term Insurance Industry.
1998

1 of 1998

Originally published in
General Notice 427 on
11 March 1998
(GG 18738)

Issued on 11/03/1998

—————-

Withdrawn with effect from 13/11/1998

Documentary proof required on consignment or delivery of movable goods to a recipient at an address in an export country

Section 11(1)(a) read with paragraph (a) of the definition of “exported” in section 1

Withdrawn by Practice Note 2 of 1998 dated 13 November 1998

2 of 1998

Originally published in
General Notice 2762 on 13 November 1998
(GG 19471)

Issued on 13/11/1998

—————-

Withdrawn with effect from 01/04/2005

Documentary proof required on consignment or delivery of movable goods to a recipient at an address in an export country

Section 11(1)(a) read with paragraph (a) of the definition of “exported” in section 1
Withdrawn by Interpretation Note 30 (Issue 1) with effect from 1 April 2005
1996
1 of 1996

Issued on 12/04/1996

—————-

Withdrawn with effect from 01/02/2010

Withdrawal of rulings in respect of value-added tax
Withdrawn by Notice of Withdrawal of Practice Notes dated 1 February 2010

1995
14 of 1995
Issued on 20/01/1995
—————-
Witdrawn with effect from
31/03/2010

Going concerns – Section 11(1)(e) Withdrawn by Interpretation Note 57 dated 31 March 2010
15 of 1995
Issued on07/04/1996
—————–
Withdrawn with effect from 01/02/2010
Treatment of supplies of dried maize and maize products Withdrawn by Notice of Withdrawal of Practice Notes  dated 1 February 2010


  Note:
Schedules 1 and 2 to the VAT Act were amended by Revenue Laws Amendment Act, 2007 to deal with the matte
1994
13 of 1994 
Issued on 06/09/1994
—————–
Withdrawn with effect from 09/04/2015

Professional hunters and taxidermists Withdrawn by Interpretation Note 81 (Issue 2) dated 9 April 2015

1993
12 of 1993

Issued on 24/11/1993

—————-

Withdrawn with effect from 01/04/2016

Zero-rating of the supply of brown bread

Section 11(1)(j)

The term “brown bread” in Item 1 of paragraph 1, under Part B of Schedule 2 to the VAT Act is defined with reference to Regulation 1 of the Regulations in terms of Government Notice R577, published in Government Gazette No. 13074 of 15 March 1991.

Therefore, the details in the Practice Notice are not necessary. Note however that these regulations have been repealed and replaced by the Regulations contained in Government Notice No. 186 of 22 February 2008, published in Government Gazette No. 30782.

1992
11 of 1992

Issued on 10/02/1992

—————-

Withdrawn with effect from 01/04/2016

Zero-rating of the supply of certain transport-related services

Sections 11(2)(g)(iv) and 11(2)(h)

(1) The legislation was amended.

(2) The normal requirements of sections 11(2)(a), (c) and (e) must be met for the zero-rating to apply.

1991
1 of 1991

Issued on 25/09/1991

——————

Withdrawn with effect from 01/02/2010
Valuation of Livestock – Section 78
Withdrawn by Notice of Withdrawal of Practice Notes dated 1 February 2010
2 of 1991

Issued on 25/09/1991

——————–

Withdrawn with effect from 09/04/2015

Tax Invoices, Debit Notes and Credit Notes Withdrawn by Interpretation Note 83 (Issue 2) dated 9 April 2015
3 of 1991

Issued on 25/09/1991

—————-

Withdrawn with effect from 01/04/2016

Prices advertised or quoted to include tax, including transitional rules for the change over from sales tax to VAT

Section 65

(1) The transitional rules for the change over from sales tax to VAT are obsolete.

(2) Should there be a need to approve alternative methods of displaying prices, approval may be granted to a vendor or class of vendors on request under proviso (iii) to section 65.

4 of 1991

Issued on 25/09/1991

—————-

Withdrawn with effect from 01/04/2016

Time of supply:
Determination of time of supply in respect of certain fixed property transactions
(1) References to section 9(3)(d)(i) are obsolete.
(2) Explanations relating to the conclusion of agreements before the VAT Act commenced, as well as retention money received after 30 September 1991 relating to services performed before that date, are outdated.
(3) Normal time of supply rules apply to agent’s commission. The time of supply rules relating to fixed property are covered in the VAT 409 – Guide for Fixed Property and Construction.
5 of 1991

Issued on 25/09/1991

—————–

Withdrawn with effect from 14/12/2009

Tax periods – Section 27 Withdrawn by Interpretation Note 52 (Issue 1) dated 14 December 2009

8 and 9 of 1991

Originally published in General Notice 397 on 27 April 1992
(GG 13949)

Issued on 01/05/1992

——————

Withdrawn with effect from 27/04/1992

VAT Export Incentive Scheme – Procedures for refund of tax to certain persons resident or conducting business in BLNS countries or to supply goods to them at the rate of zero per cent Replaced by Notice 2761 published in GG 19471 dated 13 November 1998 and then included in the Regulations
10 of 1991

Issued on 01/10/1991

—————-

Withdrawn with effect from 01/04/2016

Zero-rating of the supply of international transportation services of goods and related activities

Sections 11(2)(a), 11(2)(c) and
11(2)(e)

(1) The legislation was amended.
(2) The normal requirements of sections 11(2)(a), (c) and (e) must be met for the zero-rating to apply.

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