__
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SAICA
Student Handb00k
2019/2020
Tax Legislation
::::=.:cI�; t (IAc962)(199')
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Volume 3
, SAICA
Student Handbook
2019/2020
Volume 3
Legislation
SAICA
THE SOUTH AFRICAN INSTITUTE
OF CHARTERED ACCOUNTANTS
develop. Influence. lead.
LexisNexis®
,Members o f t h e LexlsNexls Group worldwide
South Africa LexisNexis (Pty) Ltd
www.lexisnexis.co.za
DURBAN 215 Peter Mokaba Road (North Ridge Road), Morningside, Durban, 4001
JOHANNESBURG Building 8, Country Cl
CAPETo'WN First Floor, Great Westerford, 240 Main Road, Rondebosch, 7700
AustraUa LexisNexis, CHATSWOOD, New South Wales
Austria LexisNexis Verlag ARD Orac, VIENNA
Benelux LexisNexis Benelux, AMSTERDAM
Canada LexisNexis Canada, MARKHAM, Ontario
China LexisNexis, BEllING
France LexisNexis, PAFlS
Germany LexisNexis Germany, MONSTER
Hong Kong LexisNexis, HONG KONG
India LexisNexis, NEW DELHI
Italy Giuffre Editore, MILAN
Japan LexisNexis, TOKYO
Korea LexisNexis, SEOUL
Malaysia LexisNexis, KUIllA LtJ},1}'UR
New Zealand LexisNexis, WELLINGTON
Poland LexisNexis Poland, WARBAW
Singapore LexisNexis, SIN"GAPORE
United Kingdom LexisNexis, LONDON
United States LexisNexis, DAYTON, Ohio
© 2019
ISBN 9780 6390 0426 6
Copyright subsists in this work. No part of this work may be reproduced in any form or by any means without the publisher's written permission. Any
ooauthorised reproduction of this work will constitute a copyright infringement and render the doer liable ooder both civil and criminal law.
Whilst every effort has been made to ensure that the information pub lished in this work is accurate, the ed itors, publishers and printers take no responsibility
for any loss or damage suffered by any person as a result of the reliance upon the information contained therein.
Editor: Statutes EditorialTeam
Technical Editor: Farzana Kader
<9
Printed by novus print, a division of Novus Holdings
, Foreword
Volume 3 of the SAICA Legis/ation Handbook 2019/2020 includes the consolidated Income Tax Ac� No. 58 of 1962, Value
Added Tax Act, No. 89 of 1991, Estate Duty Ac� No. 45 of 1955, Transfer Duty Ac� No. 40 of 1949, Securities Transfer Tax
Ac� No. 25 of 2007 and Tax Administration Act, No. 28 of 2011, as well as ancillary legislation in respect of these Acts.
The above-mentioned principal Acts have been updated to include all relevant instruments promulgated on or before
31 December 2019*
At the time of sending to print the Taxation Laws Amendment Bill [B 18-2019], Tax Administration Laws Amendment Bill
[B 19-2019] and the Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B 17-2019] have been adopted by
the National Assembly.
The amendments have been incorporated into the above-mentioned principal Acts.
We have referred to the Taxation Bills in annotations as follows:
* Taxation Laws Amendment Bill [B 18-2019]- TLA Act of 20l9.
* Tax Administration Laws Amendment Bill [B 19-2019]- TALA Act of 20l9.
* Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B 17-2019]- Rates Act of 2019
These amendments have been clearly indicated in the annotations, while some older annotations have been removed from the
legislation published in this book.
Current promulgated amendments are incorporated into the body of the Acts and refer to all amendments with an effective date
on or before 1 March 2020.
Proposed amendments are included in the principal Acts directly after the corresponding existing provision and are shaded
in grey to distinguish them from current legislative provisions. Proposed amendments comprise amendments with an
effective date after 1 March 2020 and amendments with an effective date still to be determined by Proclamation or Notice in
the Government Gazette.
For the benefit of students dealing with a tax year ending on or before 28 February 2020, there is an additional supplement
providing the wording of legislation prior to amendments taking effect on 1 March 2020.
INITIAL TEST OF COMPETENCE (IIC) 2021- examinable pronouncements
The following South African Acts will form part of the examinable legislation for taxation:
• Income Tax Act, No. 58 of 1962;
• Value-Added Tax Act, No. 89 of 1991;
• Estate Duty Act, No. 45 of 1955;
• Relevant sections of the Transfer Duty Act, No. 40 of 1949;
• Relevant sections of the Securities Transfer Tax Ac� No. 25 of 2007; and
• Relevant sections of the Tax Administration Act, No. 28 of 2011.
In terms of the policy of SAICA's Initial Professional Development Committee, the cut-off date for taxation legislation
examinable in the IIC is as follows:
• Amendments promulgated by 31 January 2020,* and which are effective for the 2020 year of assessment. In other
words, all amendments effective for years of assessment 2021 or later are not examinable (and these sections are
included in grey shaded boxes underneath the corresponding existing provision in the SAICA legislation handbook
2019/2020).
Therefore the IIC 2021 will test individuals with a 2020 year of assessment and non-natural persons with a December 2020
year of assessment (or earlier).
"" SAICA RESERVES THE RIGHT TO CHANGE THIS TO A LATER DATE SHOULD THE RELEVANT LEGISLATION NOT BE PROMULGATED BEFORE THIS
DATE.
• "'0_ ROO, <0.... ...0
__ •
SAICA
Student Handb00k
2019/2020
Tax Legislation
::::=.:cI�; t (IAc962)(199')
It"",. ...... A
t
Duty� (19.9 )
0 1955)
T.onsfe.
rm.s T
ct Act (2007)
Sa<:u
lox "'dml n���· lOx
r (2011)
on "(;1
Volume 3
, SAICA
Student Handbook
2019/2020
Volume 3
Legislation
SAICA
THE SOUTH AFRICAN INSTITUTE
OF CHARTERED ACCOUNTANTS
develop. Influence. lead.
LexisNexis®
,Members o f t h e LexlsNexls Group worldwide
South Africa LexisNexis (Pty) Ltd
www.lexisnexis.co.za
DURBAN 215 Peter Mokaba Road (North Ridge Road), Morningside, Durban, 4001
JOHANNESBURG Building 8, Country Cl
CAPETo'WN First Floor, Great Westerford, 240 Main Road, Rondebosch, 7700
AustraUa LexisNexis, CHATSWOOD, New South Wales
Austria LexisNexis Verlag ARD Orac, VIENNA
Benelux LexisNexis Benelux, AMSTERDAM
Canada LexisNexis Canada, MARKHAM, Ontario
China LexisNexis, BEllING
France LexisNexis, PAFlS
Germany LexisNexis Germany, MONSTER
Hong Kong LexisNexis, HONG KONG
India LexisNexis, NEW DELHI
Italy Giuffre Editore, MILAN
Japan LexisNexis, TOKYO
Korea LexisNexis, SEOUL
Malaysia LexisNexis, KUIllA LtJ},1}'UR
New Zealand LexisNexis, WELLINGTON
Poland LexisNexis Poland, WARBAW
Singapore LexisNexis, SIN"GAPORE
United Kingdom LexisNexis, LONDON
United States LexisNexis, DAYTON, Ohio
© 2019
ISBN 9780 6390 0426 6
Copyright subsists in this work. No part of this work may be reproduced in any form or by any means without the publisher's written permission. Any
ooauthorised reproduction of this work will constitute a copyright infringement and render the doer liable ooder both civil and criminal law.
Whilst every effort has been made to ensure that the information pub lished in this work is accurate, the ed itors, publishers and printers take no responsibility
for any loss or damage suffered by any person as a result of the reliance upon the information contained therein.
Editor: Statutes EditorialTeam
Technical Editor: Farzana Kader
<9
Printed by novus print, a division of Novus Holdings
, Foreword
Volume 3 of the SAICA Legis/ation Handbook 2019/2020 includes the consolidated Income Tax Ac� No. 58 of 1962, Value
Added Tax Act, No. 89 of 1991, Estate Duty Ac� No. 45 of 1955, Transfer Duty Ac� No. 40 of 1949, Securities Transfer Tax
Ac� No. 25 of 2007 and Tax Administration Act, No. 28 of 2011, as well as ancillary legislation in respect of these Acts.
The above-mentioned principal Acts have been updated to include all relevant instruments promulgated on or before
31 December 2019*
At the time of sending to print the Taxation Laws Amendment Bill [B 18-2019], Tax Administration Laws Amendment Bill
[B 19-2019] and the Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B 17-2019] have been adopted by
the National Assembly.
The amendments have been incorporated into the above-mentioned principal Acts.
We have referred to the Taxation Bills in annotations as follows:
* Taxation Laws Amendment Bill [B 18-2019]- TLA Act of 20l9.
* Tax Administration Laws Amendment Bill [B 19-2019]- TALA Act of 20l9.
* Rates and Monetary Amounts and Amendment of Revenue Laws Bill [B 17-2019]- Rates Act of 2019
These amendments have been clearly indicated in the annotations, while some older annotations have been removed from the
legislation published in this book.
Current promulgated amendments are incorporated into the body of the Acts and refer to all amendments with an effective date
on or before 1 March 2020.
Proposed amendments are included in the principal Acts directly after the corresponding existing provision and are shaded
in grey to distinguish them from current legislative provisions. Proposed amendments comprise amendments with an
effective date after 1 March 2020 and amendments with an effective date still to be determined by Proclamation or Notice in
the Government Gazette.
For the benefit of students dealing with a tax year ending on or before 28 February 2020, there is an additional supplement
providing the wording of legislation prior to amendments taking effect on 1 March 2020.
INITIAL TEST OF COMPETENCE (IIC) 2021- examinable pronouncements
The following South African Acts will form part of the examinable legislation for taxation:
• Income Tax Act, No. 58 of 1962;
• Value-Added Tax Act, No. 89 of 1991;
• Estate Duty Act, No. 45 of 1955;
• Relevant sections of the Transfer Duty Act, No. 40 of 1949;
• Relevant sections of the Securities Transfer Tax Ac� No. 25 of 2007; and
• Relevant sections of the Tax Administration Act, No. 28 of 2011.
In terms of the policy of SAICA's Initial Professional Development Committee, the cut-off date for taxation legislation
examinable in the IIC is as follows:
• Amendments promulgated by 31 January 2020,* and which are effective for the 2020 year of assessment. In other
words, all amendments effective for years of assessment 2021 or later are not examinable (and these sections are
included in grey shaded boxes underneath the corresponding existing provision in the SAICA legislation handbook
2019/2020).
Therefore the IIC 2021 will test individuals with a 2020 year of assessment and non-natural persons with a December 2020
year of assessment (or earlier).
"" SAICA RESERVES THE RIGHT TO CHANGE THIS TO A LATER DATE SHOULD THE RELEVANT LEGISLATION NOT BE PROMULGATED BEFORE THIS
DATE.
