Interpretation Notes – numbers 1-20

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.​
The groups of Interpretation Notes can be accessed from here or on the navigation pane above:

Numbers 21-40

Numbers 41-60

Numbers 61-80


Number​ ​Subject ​Applicable Legislation
IN 1 ​Provisional Tax Estimate ​Income Tax Act, 1962 ​Paragraph 19(3) of the Fourth Schedule
IN 2 ​Foreign dividends – deductibility of interest ​Income Tax Act, 1962 ​Section 11C
IN 3 ​Resident: Definition in relation to a natural person – ordinarily resident ​Income Tax Act, 1962 ​Section 1
IN 4 ​Resident: Definition in relation to a natural person – physical presence test ​Income Tax Act, 1962 ​Section 1
IN ​5 ​Employees Tax: Directors of Private Companies (which include persons in close corporations who perform functions similar to directors of companies) ​​Income Tax Act, 1962 ​Paragraphs 1, 9(5) and 11C of the Fourth Schedule
IN 6 ​Resident: Place of effective management (persons other than natural persons) ​​Income Tax Act, 1962 ​Section 1
IN ​7 ​Restraint of trade payments ​Income Tax Act, 1962 ​Sections 1, 11(cA) and 23
IN 8 ​Insolvent Estates ​​Income Tax Act, 1962 ​Section 25C
IN 9 ​Small Business Corporations ​​Income Tax Act, 1962 ​Section 12E
IN 10 ​Exemptions: Public Benefit Organisations ​Skills Development Levies Act, 1999 ​Section 4(c)
IN 11 ​Trading Stock: Assets not used as trading stock ​​Income Tax Act, 1962 ​Sections 1 and 22
IN 12 ​Recoupment: Assets in a deceased estate ​​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 ​Allowances, Advances and Reimbursements ​Income Tax Act, 1962 ​Section 8(1)(a) and (c)
IN 15 ​Objection: Exercise of a discretion – Late objection ​​Income Tax Act, 1962 ​Section 81(1) and (2) read with section 107A rules
IN 16 ​Exemption from Income Tax: Foreign employment income ​​Income Tax Act, 1962 ​Section 10(1)(o)(ii)
IN 17 ​Employees’ Tax: Independent contractors ​​Income Tax Act, 1962 ​Fourth Schedule
IN 18 ​Rebate or deduction for foreign taxes on income ​​Income Tax Act, 1962 ​Section 6quat
IN 19 ​Year of assessment: Accounts accepted to a date other than the last day of February ​​Income Tax Act, 1962 ​Section 1 – definition of ‘year of assessment’, sections 5, 66(13A), 89quat and paragraph 21 of the Fourth Schedule
IN 20 ​Additional deduction for learnership allowance ​​Income Tax Act, 1962 ​Section 12H