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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, 1962 | Paragraphs 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| IN 2 (Issue 3) | Foreign dividends – deductibility of interest Archived on 11 February 2016 – Section 11C was repealed with effect from 1 April 2012 | Income Tax Act, 1962 | Section 11C |
| IN 3 (Issue 2) | Resident: Definition in relation to a natural person – ordinarily resident | Income 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functions similar to directors of companies) Archived on 6 March 2017 – Paragraph 11C of the Fourth Schedule was repealed with effect from 1 March 2017 | Income Tax Act, 1962 | Paragraphs 1, 9(5) and 11C of the Fourth Schedule |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 payments | Income Tax Act, 1962 | Sections 1, 11(cA) and 23(l) |
| IN 8 (Issue 3) | Insolvent estates of natural persons | Income Tax Act, 1962 | Section 25C |
| IN 9 (Issue 7) | Small business corporations | Income Tax Act, 1962 | Section 12E |
| IN 10 (Issue 3) | Skills development levy exemption: Public benefit organisations | Skills Development Levies Act, 1999 | Section 4(c) |
| IN 11 (Issue 4) | Trading stock: Assets not used as trading stock | Income 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 25(1) |
| IN 13 | Deductions: Limitation of deductions for employees and office holders | Income Tax Act, 1962 | Section 23(m) |
| IN 14 (Issue 4) | Allowances, advances and reimbursements | Income 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 income | Income Tax Act, 1962 | Section 10(1)(o)(ii) |
| IN 17 (Issue 5) | Employees’ tax: Independent contractors | Income 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) New! | Year of assessment of natural persons and trusts: Accounts accepted to a date other than the last day of February | Income Tax Act, 1962 | Sections 66(13A) |
| IN 20 (Issue 7) | Additional deduction for learnership allowance | Income Tax Act, 1962 | Section 12H |
