Changes to the Income Tax Act and Regulations

5 January 2023

Amendments to the Income Tax Act were made by the following Acts

1. Tax Administration Laws Amendment Act, 16 of 2022 (TALAA),

2. Taxation Laws Amendment Act, 20 of 2022 (TLAA)

Section 1: changes to the interpretation of contributed tax capital, foreign dividend, gross income, identical security, living annuity, pension fund, pension preservation fund, provident fund, provident preservation fund, and retirement annuity fund
Section 7B: variable remuneration to include any amount of “remuneration” as defined in paragraph 1 of the Fourth Schedule (other than bonus) that is determined based on the employee’s work performance.
7C: trust and connected person
8F: interest on hybrid instruments deemed to be dividends in specie
8FA: hybrid interest deemed to be dividends in specie
9D: controlled foreign companies
10: interest exemption
10B: headquarter companies
10C: qualifying annuities
Section 11: government grants
11D: R&D
12L: energy efficiency savings
19: reduction of debt
23: deductions not allowed
23M interest limitations regarding debts owed to persons not subject to tax
24: credit agreements and debtors allowance
28 short-term insurance business
29A: long-term insurers
45: intra-group transactions
64FA: dividends in specie exemption and reduction
64K: payment and recovery of tax
Second; Fourth; Seventh; Eighth; and Eleventh schedules

3. The Rates Act

Section 6: Normal tax rebates for the tax period 1 March 2023 to 28 February 2024
Section 6A: Amended the amount of the medical scheme fees tax credit amounts
Paragraph 9 of the Seventh Schedule on employment or office residential accommodation benefit, from 1 March 2022
Commencement dates were for amendments was changed to 31 March 2023 on Section 20: setting-off assessed losses and 23M: limitation of interest deductions in respect of debts owed to persons not subject to tax.

You can access the amendment acts here.

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