Income Tax Act, 1970
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28 .9 197C
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. ~": .·- .. ';. . . . . STAATSKOERANT;_ ~ .. ·vAN DIE REPUBLIEK VAN SUID-AFRIKA
REPUBLIC OF SOUTH AFRICA
GOVER~ENT GAZETTE A.r 'n Nuusblad by die Poskantoor Geregistrur Registered at the Post Office as a Newspaper
Vol. 63.]
Prys lOc Price
· Oorsee lSc Overseas POSVRY-POST FREE
KAAPSTAD, 23 SEPTEMBER 1970.
CAPE TOWN, 23RD SEPTEMBER, 1970. [No. 2825.
DEPARTEMENT VAN DIE EERSTE MINISTER. DEPARTMENT OF THE PRIME MINISTER.
No. 1559. 23 September 1970. No. 1559. 23rd September, 1970.
Hierby word bekend gemaak dat die Staatspresident sy goedkeuring geheg bet aan die onderstaande Wet wat hierby ter algemene inligting gepubliseer word:-
t No. 52 van 1970: Inkomstebelastingwet, 1970 ..
It is hereby notified that the State President has assented to the following Act which is hereby published for general information:-
No. 52 of 1970: Income Tax Act, 1970.
GOVERNMENT GAZETIE, 23RD SEPTEMBER, 1970
INCOME TAX ACT, 1970.
ACT To fix the rates of normal tax payable by persons other than
companies In respect or taxable Incomes for the years or assessment ending on the twenty-eighth day of February, 1971, and the thirtieth day of June, 1971, and by companies in respect or taxable Incomes for years or assessment ending daring the period of twelve months ending on the thirty-first day of March, 1971; to provide for the payment of certain portions of the normal tax payable by certain companies into provincial revenue fonds and the Revenue Fond of the territory of South-West Africa; to provide for the basis of calculation of any tax levied by a provincial council on the Incomes of persons other than companies; to provide for the repayment to the taxpayers concerned of certain portions of the normal tax paid by those taxpayers; to amend the Income Tax Act, 1962, and the Income Tax Act, 1969; and to provide for Incidental matters.
(English text signed by the State President.) (Assented to 15th September, 1970.)
BE IT ENACfED by the State President, the Senate and the . House of Assembly of the Republic of South Africa, as
follows:-
No. 2825
Act·No; 5%, 1970
1. The rates of normal tax to be levied in terms of section 5 Rates or normal (2) of the Income Tax Act, 1962 (Act No. 58 of 1962), herein- tax. after referred to as the principal Act, in respect of-
(a) the taxable income of any person other than a company for the year of assessment ending the twenty-eighth day of February, 1971, or the thirtieth day of June, 1971; and
(b) the taxable income of any company for any year of assessment ending during the period of twelve months ending on the thirty-first day of March, 1971,
shall be as set forth in Schedule I to this Act.
2. (1) Nothwithstanding the provisions of section 5 (1) of Portions or the principal Act but subject to the provisions of any law ~=0: providing for the payment of moneys into the Transkeian certain Revenue Fund, a portion equal to twelve and a half per cent companies to be of any amount of tax determined in accordance with paragraph paid !nt? 1 (b) (ti) of Schedule 1 to this Act, shall accrue for the benefit provm~~ds of the. respective provincial revenue funds in the proportion revcnu · set forth in Proclamation No. 310 of 1957, but subject to such modifications as may be. determined by the State President by proclamation in the Gazette, and shall in the said proportions be paid into the said provincial revenue funds in accordance with the laws relating to the collection. banking and custody of provincial revenues as though it were a tax imposed by the provincial councils of the said provinces on the incomes of companies.
3
GOVERNMENT GAZETTE, 23RD SEPTEMBER, 1970
INCOME TAX ACT, 1970.
(2) The provisions of this section shall be deemed to have come into operation on the first day of April, 1970.
No. 2825
Act No. 52, 1970
3. (1) Notwithstanding the provisions of section 5 (1) of Portion of the principal Act, a portion equal to fifteen per cent of any ~0~ ~ amount of tax determined in accordance with paragraph 1 C:~ecomp~eS (b) (i) of Schedule 1 to this Act shall accrue for the benefit to be paid into of the Revenue Fund of the territory of South-West Africa thcReven!'cFund and shall be paid into the said fund in the manner prescribed og,hc~~o1'
· in section 22 (2) (c) of the South-West Africa Affairs Act, 1969 Mri:_ - cs (Act No. 25 of 1969).
(2) The provisions of this section shall be deemed to have come into operation on the first day of April, 1970.
5
4. For the purposes of assessing any tax imposed by a pro- Cal~a?o~ of . vincial council in the exercise of its powers under the Financial fro~Cialt=me Relations Consolidation and Amendment Act, 1945 (Act No. or::::or 38 of 1945), on the incomes of persons, the amount of normal assessment tax payable under this Act by any person other than a company ending 28th for the year of assessment ending the twenty-eighth day of Fe~~,1971, February, 1971, or the thirtieth day of June, 1971, whichever ~~71 une, is applicable, shall, notwithstanding the provisions of the first- · mentioned Act, be deemed to be equal to the amount payable as normal tax in terms of paragraph 1 (a) of Schedule 1 to this Act, after the deduction of the rebates provided for in sections 6 and 6bis of the principal Act but before the addition of the sum referred to in the proviso to the said paragraph 1 (a).
S. The portion of the normal tax determined in accordance Certain portions with the provisions of paragraph 1 (h) or (i) of Schedule 1 of the normal to this Act shall be a loan portion of that tax, and where such !:!~a~c to loan portion has been paid by the person concerned it shall be the taxpayers repayable to such person in accordance with the provisions of concerned. section 5 (2B) of the principal Act and the Fifth Schedule to that Act.
6. Section 1 of the principal Act is hereby amended- Amendment of (a) by the substitution for paragraph (i) of the definition ~~~ lf~~62, of "gross income" of the following paragraph: as ~,;ded by
"(i) the value during the yea~ of assessment of any ~C:~:f~~62, quarters or board or restdence . or of any other section 1 of benefit or advantage granted in respect of em- Act 6 ofl963, ployment or to the holder of any office, in- section 4 of eluding any amount required to be included in Act_72ofl963, th , . d . SA, d scction4of e taxpayers mcome un er section ; ; an Act90ofl964,
sectionS of (b) by the substitution for the definition of "Republic" Act 88 of 196S,
of the following definition: sections of Act 5S of 1966,
"'Republic' means the Republic of South Africa: ~~i3f;f~~67• Provided that- sectionS of
. . Act 76 of 1968 (i) for the purposes of the definttions of and section 6 of
'company' and 'representative taxpayer' in Act 89 ofl969. this section and the provisions of sections 98, 101, 103, 106 and 108; and
(ii) for the purposes of the definition of 'gross income' in this section and the provisions of Parts I, ll and IV of Chapter ll and the First and Fifth Schedules, in so far as such definition and such provisions apply in re- lation to the taxation of any company or to any matter affecting the liability or non- liability of any company for tax,
GOVERNMENT GAZETIE, 23RD SEPTEMBER, 1970
INCOME TAX ACT, 1970.
the territory shall be deemed to form part of the Republic;".
No. 282S
Act No. 52, 1970
7. Section 5 of the principal Act is hereby amended by the Am~dmem of insertion after subsection (2A) of the following subsection: ~f: .;f ~~2,
"(2B) (a) Notwithstanding the provisions of subsection ~subs~itutedr (I), any portion of the normal tax which in terms of 1ct~FMf paragraph (b) of this subsection, the Income Tax Act, and amended by 1970, or any subsequent Income Tax Act is a loan sectionS of portion of such tax and has been paid by the person Act.90of1964, concerned, shall be repayable to such person in the ~~~: :f~~65 manner and at the time provided in the Fifth Schedule. section 7 of '
(b) Th . f h al d . d. d ActSSof1966, e portions o t e norm tax etermme m accor - section 6 of ance with the provisions of paragraph I (g) or (h) Act 9S of1967, of the Schedule to the Income Tax Act, 1965 (Act No. section6or 88 of 1965) paragraph 1 (g) or (h) of the Schedule Act76of1968 ' . and sectton 7 or to the Income Tax Act, 1966 (Act No. 55 of 1966), Act89of1969. paragraph 1 (h) or (i) of the Schedule to the Income Tax Act, 1967 (Act No. 95 of 1967), paragraph 1 (h) or (i) of the Schedule to the Income Tax Act, 1968 (Act No. 76 of 1968), and paragraph 2 (h) or (i) of the Schedule to the Income Tax Act, 1969 (Act No. 89 of 1969), shall be loan portions of the normal tax.".
8. (I) Section SA of the prinCipal Act is hereby amended Am~dmentof by !he substitution for subsection (8) of the following sub- ~'f: :fi9~2• sectiOn: as inserted by
"(8) Where any gain is made after the first day of June, section 11 of 1969 b h . . I f . h Act89of1969. , y t e exerciSe, cessiOn or re ease. o a ng t to acquire any marketable security granted to any person on or before that date, the amount required to be included in income under this section in respect of such gain shall be reduced by an amount which bears to the amount of the gain, as determined under the preceding provisions of
· this section, the same ratio as the exemption period, as determined under subsection (9) in relation to the said gain, bears to the accrual period, as so determined.".
(2) The amendment effected by subsection (I) shall apply in respect of any gain made after the first day of June, 1969.
9. (1) Section 10 of the principal Act is hereby amended- Am~ndmentor . sectton 10of
(a) by the substitution for subparagraph (xi) of paragraph Act ss of1962, (i) of subsection (I) of the following subparagraph: ~~~8d~1 by
"(xi) so much of the interest on Six per cent Treasury ~90 O.,f 1£62. Bonds, Five and a half per cent Jubilee Bonds Act~fof~963 and Five and three-quarter per cent Bonus Bonds section 8 or ' as in the case of any taxpayer does not in the year Act 90 of1964, of assessment exceed the sum of four thousand ~~i~: 1?1~~S six hundred and fifty rand in the aggregate;"; section ~1 of '
(b) b h b . . , b h ( ""i) f ActSSof1966, y t e su stitution .or su paragrap XIU o para- section 10 of graph (i) of the said subsection of the following sub- Act 9S of1967, paragraph: section 8 of
Act 76 of 1968 "(xiii) in the case of a taxpayer who is a natural person, and section 13 or .
so much of the aggregate of the amounts received Act 89 of 1969. or accrued as dividends on Special Tax-Free Indefinite Period shares in building societies as does not exceed six hundred and fifty rand in any year of assessment: Provided that this exemption shall not apply-
7
GOVERNMENT GAZETTE, 23RD SEPTEMBER, 1970
INCOME TAX ACT, 1970.
(aa) in respect of any such dividend the rate of which exceeds six and a half per cent per annum; or
(bb) in· respect of any such dividend which be- comes payable by a building society after the expiration of a period of five years reckoned from the date of the application to the building society concerned for the shares on which such dividend is payable; or
(cc) in respect of any dividend on any such shares for which application is made to a building society on or after a date notified by the Minister of Finance in the Gazette;";
(c) by the substitution for subparagraph (it) of paragraph (a) of subsection {4) of the following subparagraph:
"(ii) who on the last day of the year of assessment was or would had he lived have been over the age of sixty years and whose taxable income in such year of assessment does not exceed one thousand three hundred and fifty rand or, where the period of assessment is less than a full year, an amount which bears to one thousand three hundred and fifty rand the same ratio as the period assessed bears to one year; and"; and
(d) by the substitution for subparagraph (u) of paragraph {b) of the said subsection of the following subpara- graph:
"(it) who on the last day of the year of assessment was or would had he lived have been over the age of sixty years and whose taxable income in such year of assessment does not exceed nine hundred and twenty-five rand or, where the period of assess- ment is less than a full year, an amount which bears to nine hundred and twenty-five rand the same ratio as the period assessed bears to one year.".
(2) The amendments effected by subsection 1 (a) and {b) shall be deemed to have first taken effect in respect of assessments for the year of assessment ended the twenty-eighth day of February, 1970.
No. 2825
Act No. 52, 1970 .
10. Section 11 of the principal Act is hereby amended- Amendment or . section 11 or
{a) by the deletion of paragraph (r): Provided that any Act ss of1962, donation which would have qualified for deduction as JI!Dended by under item (i) in respect of the year of assessment ~~98~r~~62, commencing on the first day of March, 1970, but for section 8 or the deletion of the said item, shall be deemed to be a Act 72 of 1963, donation qualifying _for deduction by the company ~i98 9r~~64 concerned under section 18A (2) (a); and s~on ~1 or '
(b) by the substitution for paragraph (w) of the following ~~':! W~f5• paragraph: Act ss ofl966,
section 11 or "(w) an allowance in respect of any premium which Act_95of1967,
wa~ actua!IY paid by the taxpayer unde~ any ~~: ~r ~~68 pohcy of rnsurance taken out upon the life of and section 14 or an employee of the taxpayer or, in the case of a Act 89 of1969. a company, upon the life of a director or an employee of that company, the amount of such allowance to be as follows, namely-
.9
GOVERNMENT GAZETTE, 23RD SEPTEMBER, 1970
INCOME TAX ACT, 1970.
(i) where the life of the employee or director Is insured for a period of not more than one year or where the only premiums payable under the said policy are premiums of equal amount payable at regular intervals of not more than one year until benefits (other than interim or temporary benefits) become pay- able or commence to become payable under that policy, an amount equal to the amount of the premium which became payable under such policy during the year of assesment; or
(ii) in any other case, an amount equal to such portion of the premium paid under the said policy as, in the opinion of the Secretary (having regard inter alia to the terms of the policy and, in the appropriate circumstances, to the expectation of life of the employee or director) should be regarded as relating to the year of assessment; or
(iii) if, during the year of assessment, any sum (being a lump sum included in the taxpayer's gross income under paragraph (m) of the definition of 'gross income' in section I) has been received by or has accrued to the tax- payer under or upon the surrender or disposal of the said policy, an amount (not exceeding such lump sum) equal to so much of the premiums paid by the taxpayer under the said policy as has not qualified for deduction (whether by way of an allowance under this paragraph or otherwise) from the tax- payer's income in the said year of assessment and preceding years of assessment under this Act and any previous Income Tax Act:
Provided that-
(aa) no allowance shall be made under this para- graph in respect of any premium under any policy which was at the time of the payment of such premium the property of any person other than the taxpayer;
(bb) no allowance in respect of any premium under any policy of insurance shall be made under this paragraph (except, in the appro- priate circumstances, an allowance under subparagraph (iii)) in respect of any year of assessment-
(A) if during. such year any person other than the taxpayer was entitled, or would have been entitled, to any benefits that were or could have become payable under the said policy; or
(B) if a pledge or cession by the taxpayer of the said policy was in force or of effect during the said year, unless the Secretary is satisfied that such pledge or cession was effected for the purpose of providing security to obtain funds required by the taxpayer for the purposes of his trade in consequence of the employee's or director's ill-health, infirmity, incapacity,
No; 282S II
Act No. 52, 1970
GOVERNMENT GAZElTE, 23RD SEPTEMBER, 1970
INCOME TAX ACT, 1970.
retirement or cessation of services oc- curring after the said policy was acquired by the taxpayer; or
(C) if the said premium fell due before the commencement of the year of assessment ending the twenty-eighth day of Febru- ary, 1971;
(cc) the sum of the allowances made under this paragraph in respect of any insurance pre- mium shall not exceed the amount of such premium;".
No; 2825
Act No. 52, 1970
11. Section llbis of the principal Act is hereby amended- Amendment of section 11 bis of
(a) by the substitution for the definitions of "basic export A~ 58 of 1962, turnover" and "current export turnover" of the fol- as •!!serted by I · d fini · · section 10 of owmg e tions: Act90of1962
• , • I • f and amended by '"basic export turnover, m re at1on to any year o section 9 of assesment, means the amount determined in Act 72 of 1963, accordance with the formula: section 13 of
Act SS of 1966, section 12 of ' 12
x=-Xb a
. . ' in which formula "x" represents the basic export turnover which has to be determined, "a" repre- sents the number of months contained in the export periods for the immediately preceding period of not exceeding thirty-six months and "b" represents the aggregate of the export turnovers for the said period not exceeding thirty-six months;
'"current export turnover', in relation to any year of assessment, means the export turnover of the taxpayer for that year: Provided that if the export period falling within any year of assess- ment · is longer or shorter than twelve months the current export turnover shall for the purposes of the allowance to be made under subsection (3) be deemed to be an amount determined in accordance with the formula: ·
12 Y=-Xd
c
Act 95 of 1967 and !ection 10 of Act 76 of 1968.
in which formula "y" represents the current ' · · export turnover which has . to be determined,
"c" represents the number of months contained in . the export period for that year and "d" represents the actual current export turnover for that export period;"; and
(b) by the substitution for subsection (3) of the following subsection:
"(3) The exporters' allowance shall be an amount equal to fifty per cent of the market development expenditure (determined as provided in subsection
. (4)) incurred by the taxpayer during the year of assessment or, where in relation to the year of assess- ment the taxpayer has a current export turnover and a basic export turnover and such current export turnover exceeds such basic export turnover by more than 10 per cent of such basic export turnover, an amount equal to- · ·
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· GOVERNMENT GAZETTE, 23Ri> SEPTEMBER, 1970
' INCOME TAX' ACT, 1970.
(a) seventy-five per cent of such market development expenditure if such current export turnover ex- ceeds such basic export turnover by more than ten per cent but not more than twenty-five per cent ofthat basic export turnover; or
(b) one hundred per cent of such market development expenditure if such current. export turnover ·exceeds such basic export turnover by more than twenty-five per cent of that basic export turnover:
Provided that for the purposes of this subsection the current export turnover of an associated company in relation to any year of assessment shall be deemed to be the sum of the current export turnovers in relation to that year of all the associated companies of which that company is one, and the basic export turnover of that company in relation to that year shall be deemed to be the sum of the basic export turnovers of all the said . associated companies in relation to that year.".
No. 282S IS
Act No. 5:Z,i1970.
12. (1) Section i2 of the principal Act is hereby amended- Am~ndment or · SectiOD 12 of
(a) by the addition at the end of paragraph (iii) of sub- Act ss where the provisions of subsection (2) (iv) are applicable, fifteen per cent of such cost.".
(2) The amendments effected by subsection (I) shall apply in respect of assessments for years of assessment ending on or after the thirteenth day of August, 1970.
13. (I) Section 13 of the principal Act is hereby amended by Amendment or the sub~titu~ion for subsectio~s (5), (6) and (6A) of the following ~~f~ 1,11~~2, subsections. as amended by
"(5) In addition to the . deductions provided for in section 12 or subsections (1) to (4), inclusive, there shall be allowed to ~~:~r~r2• be deducted from the income of any taxpayer an allowance Act 6 or 1963, to be known as the building investment· allowance, in section II or respect of the cost to the taxpayer- Act.72ofl963,
. , . . ' sectiOn 12 Of
(a) of any building the erection of which was commenced ~~i:W~F· on or after the second day of March, 1960, but not Act88of196S later than the fourteenth day of March, 1961, and of and section 17 or any improvements (other than repairs) commenced Act ss of1966. on or after the second day of March, 1960, but not later than the fourteenth day of March, 1961, to such building or to any building the erection of which was commenced before the second day of March, 1960, if the building in question was wholly or mainly used by him for the purpose of carrying on therein any process of manufacture in the course of his trade (other than mining or farming); ·. · .
GOVERNMENT GAZETTE, 23RD SEPTEMBER, 1970
INCOME TAX ACT, 1970.
(b) of any building the erection of which was commenced on or after the fifteenth day of March, 1961, but not later than the thirtieth day of June, 1966, and of any improvements (other than repairs) commenced on or after the fifteenth day of March, 1961, but not later than the thirtieth day of June, 1966, to any such build- ing or to any building the erection of which was com- menced before the fifteenth day of March, 1961, if the building in question was wholly or mainly used by him for the purpose of carrying on therein in the course of his trade (other than mining or farming) any process of manufacture or any other process which in the opinion of the Secretary is of a similar nature, or if such building vias let by him and was wholly or mainly used for the purpose of carrying on therein any process as aforesaid in the course of any trade (other than mining or farming);
(c) of any building the erection of which was commenced after the .thirtieth day of June, 1966, and which is situated in an economic development area, and of any improvements (other than repairs) commenced after the thirtieth day of June, 1966, to any such building or to any other building situated in an economic deve- lopment area, if-
(i) the building in question was wholly or mainly used by him for the purpose of carrying on therein in the course of his trade (other than mining or farming) any process of manufacture or any other process which in the opinion of the Secretary is of a similar nature, or if such building was let by him and was wholly or mainly used for the purpose of carrying on therein any process as aforesaid in the course of any trade (other than mining or farm- ing); and .
(u) the Minister . of Finance, having regard to the circumstances of the case, directs that the allow- ance be granted;
(d) of any building (other than a building qualifying for the allowance under paragraph (c)) the erection of. which was commenced on or after the thirteenth day of August, 1970, but not later than the thirtieth day of June, 1973, and of any improvements (other than repairs and other than improvements qualifying for the allowance under paragraph (c)) commenced . on or after the thirteenth day of August, 1970, but not later than the thirtieth day of June, 1973, to any
. building, if the building in question was wholly or mainly used by him for the purpose of carrying on therein in the course of his trade (other than mining or farming) any process of manufacture or any other process which in the opinion of the Secretary is of a similar nature, or if such building was let by him and was wholly or mainly used for the purpose of carrying on therein any process as aforesaid in the course of ariy trade (other than mining or farming):
Provided that no allowance shall be made under this sub- section in respect of any building or improvements on any premises not owned by· the taxpayer unless the taxpayer at the date on which the erection of such building or the introduction of . such improvements is co=enced is
No. 2s2.5 17
Act No. 52, 1970
GOVERNMENT GAZEITE, 23RD SEPTEMBER, 1970
INCOME TAX ACT, 1970.
entitled to the occupation of such premises for a period ending not less than ten years after such date.
- (6) The building investment allowance shall be made for the year of assessment during which-
(a) in the case of the cost of erection of a building used by the taxpayer or the lessee, the building was first so used;
(b) in the case of the cost of any improvements to a build- ing, the improvements were completed:
Provided that- · (i) the allowance under subsection (5) (a) or (b) shall not
be made in respect of any year of assessment ending later than that which ended on the twenty-eighth day ofFebruary, 1967; :
(ii) the allowance under subsection (5) (d) shall not be made in respect of any building brought into use or in respect of any improvements completed after the thirtieth day of June, 1973.
' (6A) The building investment allowance shall be calculated on the cost to the taxpayer of the relevant building or improve- ments and the rate of such allowance shall be--
(a) in the case of any building or improvements referred to in subsection (5) (c), such percentage (not exceeding twenty-five per cent) of such cost as the Minister of Finance, having regard to the circumstances of the case, may direct; and ,
(b) in any other case, ten per cent of such cost:' Provided . that the said Minister may, having regard to the cir-
cumstances of the case, direct that the allowance in respect of any building referred to in subsection (5) (b) which has been used as contemplated in that paragraph in· an economic development area, or in respect of improvements to such building, shall be increased to a sum not exceeding- (i) twenty' per cent of such cost if the erection of
such building was, or such improvements were, commenced before the first day of May, 1964; or
(ii) twenty-five per cent of such cost if the erection of such building was, or such improvements were, commenced on or after that date.".
(2) The amendments effected by subsection (I) shall apply in respect of assessments for years of assessment ending on or after the thirteenth day of August, 1970.
No. 2825
Act No. 5:Z, 1970
· 14. (I) The following section is hereby substituted for section Su~titution of 18 of the principal Act· · section 18 of "Deduction in respect of medical and dental expenses.
• Act58of1962, 18. Notwithstanding the provisions of section 23 as substituted by
(a), (b) an~ (g) there shall be allowed to ~e deducted ~39 ~119~9 from the mcome of any taxpayer who IS a natural · person an allowance of one hundred and fifty rand if the taxpayer is a married person, or seventy-five rand if the taxpayer is not a married person, in respect of medical and dental expenses, irrespective of whether or not any such expenses were incurred and regardless of the amount of any such expenses: Provided that the allowance under this section in the case of a taxpayer who is not a married person shall be increased to one hundred and fifty rand if the taxpayer is in respect of the year of assessment en- titled to a deduction under paragraph (cc) of the proviso to paragraph (c) of section 6 (I) in respect of one or more children born to him or if it is proved to the satisfaction of the Secretary that the taxpayer was during the year of assessment the sole support
19
GOVERNMENT GAZBTIE, 23JtD SEPTEMBER, 1970
INCOME TAX ACT, 1970.
of a dependant: Provided further that the allowance under this section in respect of any, year of assess- ment during which one or more children are born to the taxpayer shall be increased by an amount of one hundred rand."., ·
(2) The. amendment . effected by subsection (1) . shall be deemed to have first taken effect in respect of assessments for the year of assessment ended the twenty-eighth day of February, 1970.
. ' . '
No. 2825 21
Act No. Sl, 1970
IS. The following section is hereby inserted in the principal ~rtiof8':[. Act after section 18: · ' • · · · · · Act g3 or 19~~ ''Deductjon 18A. (1) For the purposes of this section- of do!J3tions 'university' means a university established by an !fti~tver· Act of Parliament and a university college colleSes or established under the Extension of University tot~o · . Education Act, 1959 (Act No. 45 of 1959); National . . · Study Loans 'college' means a college for advanced technical ~d . education established or deemed to have been R:cFes established under the Advanced Technical
• Education Act, 1967 (Act No. 40 of 1967); and
'taxable income' in relation to any company carrying on mining operations means the taxable income of such company as calculated before allowing any deduction under section 15 (a) and before allowing any set-off of any part of the balance of assessed loss under section 20 (1) (a) which the Secretary detennines to have arisen from any deduction made under the said section 15 (a).
· (2) Notwithstanding anything to the contrary in this Act, there shall be allowed to be deducted from the taxable income of the taxpayer so much of the sum of any donations made by the taxpayer during the year of assessment- · ·
(a) to any university;
(b) to any college; and
(c) to the fund established under the National Study · Loans and Bursaries Act, 1964 (Act No. 89 of
1964), for the purpose of granting study loans or bursaries or both study loans and bursaries to students in need of financial assistance to enable them to continue or complete their studies at universities, declared institutions or schools in the Republic, ·
as does not exceed-
(aa) in the case of a person other than a company, five hundred rand or two per cent of his taxable income as calculated before allowing any deduction under this section, whichever is the greater; or
(bb) in the case of a company, five per cent of its taxable income as calculated before allowing any deduction under this section.
(3) Any claim for a deduction under subsection (2) (a) or (b) shall not be allowed unless supported by a receipt issued by the university or college concerned in such form as the Secretary may prescribe.".
GOVERNMENT GAZElTE, 23RD SEPTEMBER, 1970 No;282S 23
J INCOME' TAX ACT, 1970 .. ·; Act No. Sl, 1970 .:.
16. · (1) Section 20A of the principal Act is hereby amended Amendment of by ·the substitution for subparagraph (iii) of. paragraph (b) ~s:lffMf of subsection (2) of the following subparagraph: as ~ed b(
"(iii) any amount received' by. or accrued to such woman ~~: ~f.'%9 . · from her husband · or. any partnership of which ·
her husband. was at the time of such receipt or accrual . a member or ani private ·company of which her
·.,huSband was at such time a director or any private company of which her husband was at such time the
' sole or main shareholder or one of the principal ' "' shai-eh