South African Government

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Revenue Laws Amendment Act 31 of 2005

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31 of 2005

The Revenue Laws Amendment Act 31 of 2005 intends:

  • to amend the Transfer Duty Act, 1949, so as:
    • to provide that the Minister of Finance may reduce the rates of duty;
    • to allow for an exemption from duty in company formation transactions and where property was owned by certain superannuation funds in former TBVC territories;
    • to limit the recovery period of unpaid duty to five years; and
    • to regulate the refunds of duty, additional duty and interest;
  • to amend the Estate Duty Act, 1955,
    • to further regulate the property to be included in the estate of a deceased for purposes of determining the duty payable;
      • to further regulate the deductions from the property for purposes of determining the duty payable;
  • to amend the Income Tax Act, 1962,
    • to further regulate the provisions relating to rebates and foreign tax credits;
    • to provide for deduction of amounts incurred in respect of income of a non-resident which is attributed to a resident;
    • to further regulate the gains made by directors of companies or employees in respect of rights to acquire marketable securities;
    • to further regulate the taxation of amounts derived from broad-based employee share plans;
    • to further regulate the taxation of directors and employees on vesting of equity instruments;
    • to further regulate the circumstances in which amounts are deemed to have been accrued from a source in the Republic;
    • to further regulate the provisions relating to controlled foreign companies;
    • to provide for a cut off date in respect of the specific provisions regulating the taxation of foreign equity instruments;
    • to further regulate the exemptions from normal tax;
    • to further regulate the provisions relating to exemption of the capital element of purchased annuities where the cash consideration and annuity amount are denominated in a foreign currency;
    • to further regulate the deductions from income for purposes of determining taxable income;
    • to amend the provisions relating to the deduction in respect of machinery, plant, implements, utensils and articles used in farming or production of renewable energy;
    • to amend the provisions relating to the deduction in respect of assets used by manufacturers or hotelkeepers, aircraft and ships or assets used for storage and packing of agricultural products;
    • to further regulate the provisions relating to small business corporations;
    • to amend the deduction in respect of learnership agreements;
    • to further regulate the deduction in respect of the erection or improvement of buildings in urban development zones;
    • to effect certain consequential amendments to the deductions from income derived from mining operations;
    • to further regulate the deduction of medical and dental expenses;
    • to amend the provisions relating to deductible donations made to public benefit organisations;
    • to clarify the provisions relating to the ring-fencing of assessed losses of certain trades;
    • to further regulate the non-deductibility of certain amounts in the determination of taxable income; 
    • to effect certain consequential amendments to the limitation of allowances granted in respect of certain assets and to the provisions relating to sale and leaseback arrangements;
    • to amend the credit agreements and debtors allowance by deleting certain provisions which have become obsolete;
    • to amend the provisions relating to the allowance in respect of films;
    • to further regulate the gains or losses on foreign exchange transactions;
    • to substitute the provisions relating to the determination of taxable income from foreign currency;
    • to further regulate the provisions relating to public benefit organisations;
    • to further regulate the rules relating to corporate restructuring;
    • to make provision for a withholding tax on foreign entertainers and sportspersons who perform in the Republic;
    • to further regulate the provisions relating to donations tax;
    • to further regulate the provisions relating to the imposition of secondary tax on companies;
    • to further regulate the amounts to be deducted or withheld by employers and provisional payments in respect of normal tax;
    • to amend the provisions relating to benefits or advantages derived by reason of employment or the holding of any office;
    •  to further regulate the provisions relating to capital gains tax;
    • to amend the list of public benefit activities; and
    • to effect certain textual and consequential amendments;
  • to amend the Customs and Excise Act, 1964, so as:
    • to amend and insert certain definitions;
    • to further provide for the rate of rent in respect of goods in the State warehouse; 
    • to further regulate provisions relating to goods removed in bond;
    • to amend provisions regulating deficiencies in a customs and excise warehouse;
    • to provide for a tolerance when calculating the quantity of spirits in a container;
    • to provide for the levying of Road Accident Fund levy;
    • to amend certain rebate and refund provisions;
    • to amend the order in which instalments paid to the Commissioner are utilized;
    • to amend provisions relating to goods subject to a lien and to effect certain consequential amendments;
  • to amend the Stamp Duties Act, 1968, so as:
    • to provide that the Minister of Finance may reduce the rates of duty;
    • to further delete certain provisions dealing with the issue of marketable securities;
    • to provide for the relief of the administrative burden on the transfer of marketable securities;
    • to clarify the position on the taxation of company share buy-backs and to provide anti-avoidance legislation;
    • to simplify legislation regarding the cancellation and redemption of marketable securities;
    • to regulate the rate and exemption of duty;
  • to amend the Value-Added Tax Act, 1991, so as:
    • to amend and insert certain definitions;
    • to insert certain deeming provisions;
    • to provide for certain zero-rating and exemptions;
    • to further provide for the time and value on certain supplies;
    • to align certain provisions with the Customs and Excise Act, 1964;
    • to allow for input tax deduction on motor cars acquired to be awarded as prizes and in certain instances on entertainment;
    • to limit the period to claim input tax to five years from issue of a tax invoice;
    • to further regulate adjustments for public authorities and customs controlled area enterprises;
    • to provide for issues relating to foreign donor funding;
    • to regulate the provisions of bad debts;
  • to amend the Tax on Retirement Funds Act, 1996, so as to amend a definition;
  • to amend the Road Accident Fund Act, 1996, so as to effect consequential amendments resulting from the introduction of a Road Accident Fund levy in the Customs and Excise Act, 1964;
  • to amend the Uncertificated Securities Tax Act, 1998, so as:
    • to amend and insert certain definitions;
    • to provide that the Minister of Finance may reduce the rates of duty;
    • to further delete certain provisions dealing with the issue of securities;
    • to provide for the protection of uncertificated securities tax base against changes in beneficial ownership;
  • to amend the Revenue Laws Amendment Act, 2003, so as to substitute a commencement date; and
  • to amend the Second Revenue Laws Amendment Act, 2004, so as to substitute a commencement date; and
  • to provide for matters in connection therewith.


  • 1 February 2006, unless otherwise indicated
  • 1 August 2006, Section 44(1) (Gazette 29072 of 28 July 2006)
  • 1 April 2006, Sections 85(1), 90(1), 91(1), 92(1)(a), (b), (c), (d) and (e), 125(1) and 126(1) (Gazette 28675 of 29 March 2006)