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Employment Tax Incentive Act, 2013 (Act No. 26 of 2013)

1. Definitions


(1) In this Act, unless the context indicates otherwise—


"associated person"

in relation to an employer—

(a) where the employer is a company, means any other company which is associated with that employer by reason of the fact that both companies are managed or controlled directly or indirectly by substantially the same persons;
(b) where the employer is not a company, means any company which is managed or controlled directly or indirectly by the employer or by any partnership of which the employer is a member; or
(c) where the employer is a natural person, means any relative of that employer;



means a company as defined in section 1 of the Companies Act, 2008 (Act No. 71 of 2008);



means a natural person—

(a) who works directly for another person; and
(b) who receives, or is entitled to receive remuneration, from that other person,

but does not include an independent contractor;


"employees’ tax"

means the amount deducted or withheld and that must be paid over to the Commissioner for the South African Revenue Service by virtue of paragraph 2(1) of the Fourth Schedule to the Income Tax Act;


"Income Tax Act"

means the Income Tax Act, 1962 (Act No. 58 of 1962);


"Labour Relations Act"

means the Labour Relations Act, 1995 (Act No. 66 of 1995);


"monthly remuneration"
(a) where an employer employs and pays remuneration to a qualifying employee for at least 160 hours in a month, means the amount paid or payable to the qualifying employee by the employer in respect of a month; or
(b) where an employer employs a qualifying employee and pays remuneration to that employee for less than 160 hours in a month, means an amount calculated in terms of section 7(5);

[Definition substituted by section 93 of the Taxation Laws Amendment Act, 2016 (Act No. 15 of 2016)]


"qualifying employee"

means an employee contemplated in section 6;


"special economic zone"

means a special economic zone designated by the Minister of Trade and Industry pursuant to an Act of Parliament;


"Tax Administration Act"

means the Tax Administration Act, 2011 (Act No. 28 of 2011);



means wage as defined in section 1 of the Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997).


(2) For the purposes of the definition of "monthly remuneration" in subsection (1), "remuneration" has the meaning ascribed to it in paragraph (1) of the Fourth Schedule to the Income Tax Act.


(3) For the purposes of paragraph (c) of the definition of "associated person" in subsection (1) "relative", in relation to any person, means the spouse of that person or anybody related to him or her or to his or her spouse within the third degree of consanguinity, or any spouse of anybody so related.