RECEIPTS/ACCRUALS
GROSS INCOME
RESIDENT
Natural person Ordinarily resident Choen v CIR:
Return from his wanderings
CIR v Kuttel
Usual or principal residence
Exclude occasional absence.
Not dependent on the number of
days present
Physical presence test Physical presence:
91 days in the current year;
AND
91 days in each of the
preceding 5 years; AND
915 days in aggregate in
the preceding 5 years.
Other than a natural Incorporated, established or formed in
person SA
Place of effective management (POEM) in Key management and commercial
SA decisions that are necessary for the
conduct of the business as a whole
are substance-made.
SOURCE
SA source income stream
S9(2)
S9(2)(a) Dividends Any dividend received by or accrued to a person
S9(2)(b) Interest Incurred by a resident, unless attributable to a permanent
establishment situated outside the Republic, OR
Is received or accrued in respect of any funds utilized or applied
by any person in the Republic.
Lump sum, pensions and annuities The amount received or accrued in respect of services rendered.
Services partly rendered:
SA source: Amount * (Years od service in SA/Total years of service)
Disposal of moveable and Property situated in the Republic.
immoveable assets
Incurred by a resident AND asset is not attributable to a PE which is
situated outside the RSA AND the proceeds is not taxed by another
country.
, Incurred by a non-resident AND the asset is attributable to a PE which is
situated in SA.
Source outside SA
S9(4)
(a)Dividends Constitutes a foreign dividend
(b) Interest Not from a source within SA in terms of s9(2)(b)
(c) Disposal of assets Not from a source within SA in terms of s9(j) or (k)
Dividend: Any amount transferred or applied by a company that is a resident.
Income not in S9
Case law
o CIR v Lever Brothers & Unilever
Case law CIR v Lever Brothers & Unilever WHAT is the originating cause?
WHERE is the originating cause
located?
SPECIAL INCLUSIONS
Special inclusions
o Do not override the source rules.
Paragraphs (a) to (n)
(a) Annuities All annuities
KBI Essential characteristics:
Ander v Hogan Periodical payment
Recipient has the right
to receive more than
one payment.
No principal sum that
is reduced by each
payment
(b) Alimony or maintenance Any amount payable by the spouse
or former spouse in terms of a
judicial order or written agreement
of separation under any order of
divorce by way of alimony,
allowance or maintenance of the
taxpayer
In terms of any maintenance order
for the maintenance of a child
, Applies only to natural persons
(c) Services rendered/ All amounts in respect of services
Employment rendered or to be rendered OR any
amount received or accrued in
respect of employment.
Irrespective of whether these
amounts are capital or revenue in
nature.
This applies only to a natural
person
Stevens v CSARS A casual relationship must exist
between the employment on
the one hand and the receipt
on the other hand.
Reason for payment must be
because of services rendered or
services to be rendered.
Provisos:
If the amount included
in virtue of para (i), it
will not be included by
virtue of para (c)
Receipt of services
rendered will always
be included in gross
income.
Amounts received for
long service shall not
be included into gross
income to the extend
that ALL long service
awards during the year
do not exceed R5 000.
(cA) & (cB) Restraint of trade May be enforced by an employer (cA) paid by:
which entails the employer placing Labour brokers
certain limitations on an Personal service
employee’s freedom of providers
employment thus rendering the Personal service
employee ineligible to trade within company or personal
the same industry you currently service trust
work in, should the employee
resign. cB received by:
Individuals
By virtue of past or
future employment
(d) Variation of office Lump sum benefits arising from Breach of service
relinquishment, and termination. contract
Loss, repudiation, cancellation, or Contribution to a
variation of office/employment director who loses his
contract
Leave entitlement in a
GROSS INCOME
RESIDENT
Natural person Ordinarily resident Choen v CIR:
Return from his wanderings
CIR v Kuttel
Usual or principal residence
Exclude occasional absence.
Not dependent on the number of
days present
Physical presence test Physical presence:
91 days in the current year;
AND
91 days in each of the
preceding 5 years; AND
915 days in aggregate in
the preceding 5 years.
Other than a natural Incorporated, established or formed in
person SA
Place of effective management (POEM) in Key management and commercial
SA decisions that are necessary for the
conduct of the business as a whole
are substance-made.
SOURCE
SA source income stream
S9(2)
S9(2)(a) Dividends Any dividend received by or accrued to a person
S9(2)(b) Interest Incurred by a resident, unless attributable to a permanent
establishment situated outside the Republic, OR
Is received or accrued in respect of any funds utilized or applied
by any person in the Republic.
Lump sum, pensions and annuities The amount received or accrued in respect of services rendered.
Services partly rendered:
SA source: Amount * (Years od service in SA/Total years of service)
Disposal of moveable and Property situated in the Republic.
immoveable assets
Incurred by a resident AND asset is not attributable to a PE which is
situated outside the RSA AND the proceeds is not taxed by another
country.
, Incurred by a non-resident AND the asset is attributable to a PE which is
situated in SA.
Source outside SA
S9(4)
(a)Dividends Constitutes a foreign dividend
(b) Interest Not from a source within SA in terms of s9(2)(b)
(c) Disposal of assets Not from a source within SA in terms of s9(j) or (k)
Dividend: Any amount transferred or applied by a company that is a resident.
Income not in S9
Case law
o CIR v Lever Brothers & Unilever
Case law CIR v Lever Brothers & Unilever WHAT is the originating cause?
WHERE is the originating cause
located?
SPECIAL INCLUSIONS
Special inclusions
o Do not override the source rules.
Paragraphs (a) to (n)
(a) Annuities All annuities
KBI Essential characteristics:
Ander v Hogan Periodical payment
Recipient has the right
to receive more than
one payment.
No principal sum that
is reduced by each
payment
(b) Alimony or maintenance Any amount payable by the spouse
or former spouse in terms of a
judicial order or written agreement
of separation under any order of
divorce by way of alimony,
allowance or maintenance of the
taxpayer
In terms of any maintenance order
for the maintenance of a child
, Applies only to natural persons
(c) Services rendered/ All amounts in respect of services
Employment rendered or to be rendered OR any
amount received or accrued in
respect of employment.
Irrespective of whether these
amounts are capital or revenue in
nature.
This applies only to a natural
person
Stevens v CSARS A casual relationship must exist
between the employment on
the one hand and the receipt
on the other hand.
Reason for payment must be
because of services rendered or
services to be rendered.
Provisos:
If the amount included
in virtue of para (i), it
will not be included by
virtue of para (c)
Receipt of services
rendered will always
be included in gross
income.
Amounts received for
long service shall not
be included into gross
income to the extend
that ALL long service
awards during the year
do not exceed R5 000.
(cA) & (cB) Restraint of trade May be enforced by an employer (cA) paid by:
which entails the employer placing Labour brokers
certain limitations on an Personal service
employee’s freedom of providers
employment thus rendering the Personal service
employee ineligible to trade within company or personal
the same industry you currently service trust
work in, should the employee
resign. cB received by:
Individuals
By virtue of past or
future employment
(d) Variation of office Lump sum benefits arising from Breach of service
relinquishment, and termination. contract
Loss, repudiation, cancellation, or Contribution to a
variation of office/employment director who loses his
contract
Leave entitlement in a
