1) There shall be exempt from normal tax--
a) the receipts and accruals of the government of the Republic in the national, provincial or local sphere;
bA) the receipts and accruals of—
i) any sphere of government of any country other than the Republic;
ii) any institution or body established by a foreign government to the extent that-
(aa) the institution or body has been appointed by that government to perform its functions in terms of an official development assistance agreement that is binding in terms of section 231(3) of the Constitution of the Republic of South Africa, 1996; and
(bb) the agreement provides that the receipts and accruals of that institution or body must be exempt; and
iii) any multinational organisation providing foreign donor funding in terms of an official development assistance agreement that is binding in terms of section 231(3) of the Constitution of the Republic of South Africa Act, 1996, to the extent—
aa) the receipts and accruals are derived pursuant to the organisation supplying goods or rendering services in relation to projects that are approved by the Minister after consultation with the Minister of Foreign Affairs;
bb) that agreement provides that those receipts and accruals of that organisation must be exempt; and
cc) the Minister announces that those receipts and accruals are exempt by notice in the Gazette.
b)
i) Deleted by section 9 of Act 21 of 1994;
ii) any pension payable to any person or his surviving spouse by reason of such person having occupied the office of State President or Vice State President: Provided that the provisions of this subparagraph shall not apply to any amount payable to any person or his surviving spouse by reason of such person having occupied the office of President as elected in terms of section 77 of the Constitution;
iii) the salary and emoluments payable to any person who holds office in the Republic as an official of any government, other than the Government of the Republic, provided such person is stationed in the Republic for that purpose and is not ordinarily resident in the Republic;
iv) any salary and emoluments payable to any domestic or private servant of any person referred to in subparagraph (iii) in respect of domestic or private services rendered or to be rendered by such servant to such person if such servant is not a South African citizen and is not ordinarily resident in the Republic;
v) any salary and emoluments payable to any subject of a foreign state who is temporarily employed in the Republic, provided the exemption of such salary and emoluments is authorized by an agreement entered into by the governments of such foreign state and the Republic;
vi) any salary and emoluments payable to any person that is a subject of a foreign state and who is not a resident to the extent that that salary or those emoluments are paid by—
aa) an institution or body contemplated in subsection (1)(bA)(ii) in respect of any agreement contemplated therein; or
bb) an organisation contemplated in subsection (1)(bA)(iii) in respect of services rendered in relation to a project contemplated therein.
cA) the receipts and accruals of--
i) any institution, board or body (other than a company registered or deemed to be registered under the Companies Act, 2008 (Act No. 71 of 2008), any co-operative, close corporation, trust or water services provider, and any Black tribal authority, community authority, Black regional authority or Black territorial authority contemplated in section 2 of the Black Authorities Act, 1951 (Act No. 68 of 1951)) established by or under any law and which, in the furtherance of its sole or principal object--
aa) conducts scientific, technical or industrial research;
bb) provides necessary or useful commodities, amenities or services to the State (including any provincial administration) or members of the general public; or
cc) carries on activities (including the rendering of financial assistance by way of loans or otherwise) designed to promote commerce, industry or agriculture or any branch thereof;
ii) any association, corporation or company contemplated in paragraph (a) of the definition of ‘corppany’ in section 1, all the shares of which are held by any such institution, board or body, if the operations of such association, corporation or company are ancillary or complementary to the object of such institution, board or body:
Provided that such institution, board, body or company--
a) has been approved by the Commissioner subject to such conditions as he may deem necessary to ensure that the activities of such institution, board, body or company are wholly or mainly directed to the furtherance of its sole or principal object;
b) is by law or under its constitution--
i) not permitted to distribute any of its profits or gains to any person, other than, in the case of such company, to its shareholders;
ii) required to utilize its funds solely for investment or the object for which it has been established; and
iii) required on dissolution--
aa) where the institution, board, body or company is established under any law, to transfer its assets to some other institution, board or body which has been granted exemption from tax in terms of this paragraph and which has objects similar to those of such institution, board, body or company; or
bb) where the institution, board, or body is established by law, to transfer its assets to--
A) some other institution, board or body which has been granted exemption from tax in terms of this paragraph and which has objects similar to those of such institution, board, body or company; or
B) to the State:
Provided further that--
a) where the Commissioner is satisfied that any such institution, board, body or company has during any year of assessment failed to comply with the provisions of this paragraph, he may withdraw his approval of the institution, board, body or company with effect from the commencement of that year of assessment;
b) where the institution, board, body or company fails to transfer, or take reasonabl steps to transfer, its assets as contemplated in paragraph (b)(ii) of the first proviso, the accumulated net revenue which has not been distributed shall be deemed for the purposes of this Act to be an amount of taxable income which accrued to such institution, board, body or company during the year of assessment contemplated in paragraph (a); and
c) any decision of the Commissioner in the exercise of his discretion under this paragraph shall be subject to objection and appeal;
cB) Deleted by section 21 of Act No. 30 of 2000];
cC) Deleted by section 21 of Act No. 30 of 2000];
cD) Deleted by section 21 of Act No. 30 of 2000];
cE) the receipts and accruals of any political party registered in terms of section 15 of the Electoral Commission Act, 1996 (Act No. 51 of 1996);
cF) Deleted by section 21 of Act No. 30 of 2000];
cG) the receipts and accruals of any person who is not a resident, which are derived by such person from carrying on business as the owner or charterer of any ship or aircraft, if a similar exemption or equivalent relief is granted by the country of which such person is a resident, to any resident in respect of any tax imposed in that country on income which may be derived by such person from carrying on in such country any business as owner or charterer of any ship or aircraft;
cH) [deleted by Revenue Laws Amendment Act No. 20 of 2006]
cI) Deleted by section 21 of Act No. 30 of 2000];
cJ) Deleted by section 21 of Act No. 30 of 2000];
cK) Deleted by section 21 of Act No. 30 of 2000];
cL) Deleted by Income Tax Act No 36 of 1996];
cM) [deleted by the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)] ;
cN) the receipts and accruals of any public benefit organisation approved by the Commissioner in terms of section 30(3) to the extent that the receipts and accruals are derived—
i) otherwise than from any business undertaking or trading activity; or
ii) from any business undertaking or trading activity—
aa) if the undertaking or activity—
(A) is integral and directly related to the sole or principal object of that public benefit organisation as contemplated in paragraph (b) of the definition of ‘public benefit organisation’ in section 30;
(B) is carried out or conducted on a basis substantially the whole of which is directed towards the recovery of cost; and
(C) does not result in unfair competition in relation to taxable entities;
bb) if the undertaking or activity is of an occasional nature and undertaken substantially with assistance on a voluntary basis without compensation;
cc) if the undertaking or activity is approved by the Minister by notice in the Gazette, having regard to—
(A) the scope and benevolent nature of the undertaking or activity;
(B) the direct connection and interrelationship of the undertaking or activity with the sole or principal object of the public benefit organisation;
(C) the profitability of the undertaking or activity; and
(D) the level of economic distortion that may be caused by the tax exempt status of the public benefit organization carrying out the undertaking or activity; or
dd) other than an undertaking or activity in respect of which item (aa), (bb) or (cc) applies and do not exceed the greater of—
i) 5 per cent of the total receipts and accruals of that public benefit organisation during the relevant year of assessment; or
ii) R150 000;
cO) the receipts and accruals of any recreational club approved by the Commissioner in terms of section 30A, to the extent that the receipts and accruals are derived—
i) in the form of membership fees or subscriptions paid by its members;
ii) from any business undertaking or trading activity that—
aa) is integral and directly related to the provision of social and recreational amenities or facilities for the members of that club;
bb) is carried out on a basis substantially the whole of which is directed towards the recovery of cost; and
cc) does not result in unfair competition in relation to taxable entities;
iii) from any fundraising activities of that club, which are of an occasional nature and undertaken substantially with assistance on a voluntary basis without compensation; and
iv) from any other source and do not in total exceed the greater of—
aa) five per cent of the total membership fees and subscriptions due and payable by its members during the relevant year of assessment; or
bb) R100 000;
cP) the receipts and accruals of a company or trust contemplated in section 37A;
d) the receipts and accruals of any--
i) pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund, or a beneficiary fund defined in section 1 of the Pension Funds Act, 1956 (Act No. 24 of 1956); or
ii) benefit fund, or
iii) mutual loan association, fidelity or indemnity fund, trade union, chamber of commerce or industries (or an association of such chambers), or local publicity association approved by the Commissioner in terms of section 30B; or
iv) company, society or other association of persons established to--
aa) [deleted by the Revenue laws Amendment Act No. 20 of 2006];
bb) promote the common interests of persons (being members of such company, society or association of persons) carrying on any particular kind of business, profession or occupation,
approved by the Commissioner in terms of section 30B;
e)
i) any levy received by or accrued to-
aa) any body corporate established in terms of the Sectional Titles Act, 1986 (Act No. 95 of 1986), from its members;
bb) a share block company established in terms of the Share Blocks Control Act, 1980 (Act No. 59 of 1980), from its shareholders; or
cc) any other association of persons (other than a company registered or deemed to be registered under the Companies Act, 2008 (Act No. 71 of 2008), any co-operative, close coporation and trust, but including a non-profit company as defined in section 1 of the Companies Act, 2008 (Act No. 71 of 2008), from its members, where the Commissioner is satisfied that, subject to such conditions as he or she may deem necessary, such association of persons-
A has been formed solely for the purposes of managing the collective interests common to all its members, which includes expenditure applicable to the common immovable property of such members and the collection of levies for which such members are liable; and
B is not permitted to distribute any of its funds to any person other than a similar association of persons:
Provided that such body, company or association is or was not knowingly a party to, or does not knowingly permit or has not knowingly permitted, itself to be used as part of any transaction, operation or scheme of which the sole or main purpose is or was the reduction, postponement or avoidance of liability for any tax, duty or levy which, but for such transaction, operation or scheme, would have been or would become payable by any person under this Act or any other law administered by the Commissioner; and
ii) any receipts and accruals other than leVies derived by a body corporate, share block company or association contemplated in subparagraph 0), to the extent that the aggregate of those receipts and accruals does not exceed RSO 000;
f) [paragraph (f) deleted by s.21 of Act No. 30 of 2000];
g) any amount received as a war pension, or as an award or a benefit under any law relating to the payment of compensation in respect of diseases contracted by persons employed in mining operations;
gA) any disability pension paid under section 2 of the Social Assistance Act, 1992 (Act No. 59 of 1992);
gB) any
(i) compensation paid in terms of the Workmen's Compensation Act, 1941 (Act No. 30 of 1941), or the Compensation for Occupational Injuries and Diseases Act, 1993 (Act No130 of 1993);
(ii) pension paid in respect of the death or disablement caused by any occupational injury or disease sustained or contracted by an employee before 1 March 1994 in the course of employment, where that employee would have qualified for compensation under the Compensation for Occupational Injuries and Diseases Act, 1993, had that injury or disease been sustained or contracted on or after 1 March 1994; and; or
(iii) compensation paid in respect of the death of any person where that death arises out of and in the course of the employment of that person, to the extent that that compensation—
A) was paid in addition to any compensation contemplated in subparagraph (i) paid in that respect;
B) does not exceed an amount of R300 000 less the sum of any other amounts which have been excluded from the person's income by virtue of the exemption conferred by paragraph (x), whether in the current or any previous year of assessment; and
C) was paid by the employer of that person;
gC) any—
(i) amount received by or accrued to any resident under the social security system of any other country; or
(ii) pension received by or accrued to any resident from a source outside the Republic, which is not deemed to be from a source in the Republic in terms of section 9(1)(g), in consideration of past employment outside the Republic;
gD) any funeral benefit payable in terms of section 6F of the Special Pensions Act, 1996 (Act No. 69 of 1996);
gE) any amount awarded to a person by a beneficiary fund as defined in the Pension Funds Act, 1956 (Act No. 24 of 1956);
gF) any value required to be taken into account in determining the gross income of any person in respect of the cession by another person of a policy contemplated in section 11(w) ceded to or in favour of that person—
i) where that person is—
aa) an employee or director of that other person or a connected person in relation to the employee or director;
bb) the estate of the employee or director; or
cc) any person who is or was wholly or partly dependent for his or her maintenance upon the employee or director; and
ii) where that policy was concluded before 1 January 2011;
h) interest as defined in section 24J(I) or deemed interest as contemplated in section 8E(2), which is received or accrued during any year of assessment by or to any person who is not a resident, unless that person-
i) is a natural person who was physically present in the Republic for a period exceeding 183 days in aggregate during that year; or
ii) at any time during that year carried on business through a permanent establishment in the Republic.
hA) *[deleted by Revenue Laws Amendment Act No. 32 of 2004]
i)
i) Deleted by section 8 of Act 36 of 1966;
ii) Deleted by section 8 of Act 36 of 1966;
iii) [deleted by the Taxation Laws Amendment Act No. 8 of 2007];
iv) Deleted by section 10 of Act 101 of 1990;
v) [deleted by the Taxation Laws Amendment Act No. 8 of 2007]
vi) Deleted by section 8 of Act 36 of 1966;
vii) Deleted by section 7 of Act 65 of 1973;
viii) Deleted by section 7 of Act 65 of 1973;
ix) Deleted by section 7 of Act 65 of 1973;
x) Deleted by section 7 of Act 65 of 1973;
xi) Deleted by section 7 of Act 104 of 1979;
xii) Deleted by section 8 of Act 36 of 1966;
xiii) Deleted by section 8 of Act 36 of 1966;
xiv) Deleted by section 8 of Act 36 of 1966;
xv) in the case of any taxpayer who is a natural person-
aa) so much of the aggregate of any foreign dividends and interest received by or accrued to him or her from a source outside the Republic, which are not otherwise exempt from tax, as does not during the year of assessment exceed R3 700: Provided that the amount of the exemption in terms of this paragraph shall-
A) first apply in respect of any such foreign dividends; and
B) in so far as such amount exceeds the amount of such foreign dividends, apply in respect of any such interest;
and
bb) so much of the aggregate of any interest received by or accrued to him or her from a source in the Republic as does not during the year of assessment exceed-
A) in the case of any person who was or, had he or she lived would have been at least 65 years of age on the last day of the year of assessment, the amount of R32 000; or
B) in any other case, the amount of R22 300, reduced by the amount of any exemption allowable in terms of paragraph (aa);
xvi) [Deleted by section 21 of Act No 30 of 2000];
iA) [deleted by section 13 of Taxation Laws Amendment Act No. 17 of 2009]
iB) any amount received by or accrued to a holder of a participatory interest in a portfolio of a collective investment scheme in securities by way of a distribution from that portfolio if that amount is deemed to have accrued to that portfolio in terms of section 25BA(b);
j) the receipts and accruals of any bank, if the Commissioner is satisfied that such bank is not resident in the Republic and is entrusted by the Government of a territory outside the Republic with the custody of the principal foreign exchange reserves of that territory, and the Minister of Finance decides to apply the provisions of this paragraph to that bank in respect of the year of assessment under charge;
k)
i) dividends (other than foreign dividends or dividends paid or declared by a headquarter company) received by or accrued to or in favour of any person: Provided that this exemption shall not apply--
aa) to dividends (other than those distributed out of profits of a capital nature and those received by or accrued to or in favour of any person who is neither a resident, nor carrying on business in the Republic) distributed by a company the shares of which are ‘property shares’ as defined in section 47 of the Collective Investment Schemes Control Act, 2002, on shares included in a portfolio comprised in any collective investment scheme in property managed or carried on by any company registered as a manager under section 42 of that Act for purposes of Part V of that Act;
bb) [deleted by section 13 of Taxation Laws Amendment Act No. 17 of 2009]
cc) to any dividend received by or accrued to or in favour of any person where such dividend constitutes or forms part of any consideration paid or payable to such person in respect of the disposal of shares (other than affected shares in respect of which the taxpayer has, in terms of the provisions of section 9B, elected the amount received or accrued on disposal to be deemed to be of a capital nature and other than qualifying shares as defined in section 9C), which were held as trading stock by such person in a company and such shares were acquired by such company in terms of the Companies Act, 2008 (Act No. 71 of 2008); or
dd) to any dividend in respect of a restricted equity instrument as defined in section 8C, unless—
A) the restricted equity instrument constitutes an equity share; or
B) the dividend constitutes an equity instrument as defined in that section;
iA) [deleted by the Revenue Laws Amendment Act, 74 of 2002].
ii) any foreign dividend or any dividend paid or declared by a headquarter company received by or accrued to a person—
aa) [deleted by section 13 of Taxation Laws Amendment Act No. 17 of 2009]
bb) if the share in respect of which the foreign dividend is paid is a listed share;
cc) to the extent that the foreign dividend relates to any amount which was declared by a listed company which complies with paragraphs (a) and (b) of the definition of ‘listed company’ in section 1;
dd) who is a resident to the extent that the foreign dividend does not exceed the aggregate of all amounts which have been or will be included in the income of that resident in terms of section 9D in any year of assessment, which relate to the net income of—
A) the company declaring the dividend; or
B) any other company which has been included in the income of that resident in terms of section 9D by virtue of that resident’s participation rights in that other company held indirectly through the company declaring the dividend, reduced by-
AA) the amount of any foreign tax payable in respect of the amounts so included in that resident’s income; and
BB) so much of all foreign dividends received by or accrued to that resident at any time from any company contemplated in subitems (A) or (B), as was-
AAA) exempt from tax in terms of this item or item (dd); or
BBB) was previously not included in the income of that resident by virtue of any prior inclusion in terms of section 9D;
dd) if that person (whether alone or together with any other company forming part of the same group of companies as that person) holds at least 20 per cent of the total equity shares and voting rights in the company declaring the dividend, or 20 per cent of the total member’s interest and voting rights in the co-operative declaring the dividend, which co-operative is established in terms of the laws of any country other than the Republic:
Provided that—
this exemption must not apply in respect of any dividend received by or accrued to any person-
i) if-
aa)
A) any amount of that dividend is determined directly or indirectly with reference to; or
B) that dividend arises directly or indirectly from, any amount paid or payable by any person to any other person;
and
bb) the amount so paid or payable is deductible by the person and-
A) is not subject to normal tax in the hands of that other person; or
B) where that other person is a controlled foreign company, is not taken into account in determining the net income, as defined in section 9D(2A), of that controlled foreign company;
ii) from any portfolio contemplated in paragraph (e) of the definition of 'company' in section 1;
iii) from any foreign financial instrument holding company as defined in section 41;
kA) [deleted by the Revenue Laws Amendment Act of 2003]
l) any amount received by or accrued to any person which amount has been subject to withholding tax in terms of the provisions of section 35;
lA) any amount received by or accrued to any person who is not a resident if that amount is subject to tax on foreign entertainers and sportspersons in terms of Part IIIA of this Chapter;
m) any amount received by or accrued to an author of a work in respect of the assignment of or grant of an interest in a copyright in such work, if such amount is chargeable with income tax in a country other than the Republic: Provided that this exemption shall not apply to any person who is not the first owner of a copyright under the Copyright Act, 1978 (Act No. 98 of 1978), or to a company;
mA) Deleted by section 10 of Act 28 of 1997;
mB) any benefit or allowance payable in terms of the Unemployment Insurance Act, 2001 (Act No. 63 of 2002);
n) Deleted by section 12 of Act 129 of 1991;
nA) where an employee is as a condition of his employment required while on duty to wear a special uniform which is clearly distinguishable from ordinary clothing, the value of any such uniform given to the employee by his employer, or so much of any allowance made by the employer to the employee in lieu of any such uniform as is reasonable;
nB) any benefit or advantage accruing to any employee (as defined in paragraph 1 of the Seventh Schedule) by reason of the fact that his employer (as defined in the said paragraph), has, in consequence of the transfer of the employee from one place of employment to another place of employment or the appointment of the employee as an employee of the employer or the termination of the employee's employment, borne the expense--
i) of transporting such employee, members of his household and the personal goods and possessions of him self and the members of his household from his previous place of residence to his new place of residence; or
ii) of such costs as the Commissioner may allow which have been incurred by the employee in respect of the sale of his previous residence and in settling in permanent residential accommodation at his new place of residence; or
iii) of hiring residential accommodation in an hotel or elsewhere for the employee or members of his household during the period ending 183 days after his transfer took effect or after he took up his appointment, as the case may be, if such residential accommodation was occupied temporarily pending the obtaining of permanent residential accommodation;
nC) any amount received by or accrued to that person in the form of a qualifying equity share contemplated in section 8B;
nD) any amount received by or accrued to that person which constitutes—
i) an equity instrument contemplated in section 8C acquired by that person and in respect of which that section applies; or
ii) consideration for the disposal of an equity instrument contemplated in subparagraph (i),
which had not yet vested as contemplated in that section at the time of that acquisition or disposal;
nE) any amount (including any taxable benefit determined under the provisions of the Seventh Schedule), but excluding any gain or loss as a result of any transaction in respect of which section 8C applies or the cancellation of any such transaction) received by or accrued to an employee, as so defined, under a share incentive scheme operated for the benefit of employees of the taxpayer's employer, as so defined, which was derived--
i) upon the cancellation of a transaction under which the taxpayer purchased shares under that scheme; or
ii) upon the repurchase from the taxpayer, at a price not exceeding the selling price to him or her, of shares purchased by him or her under that scheme,
if in consequence of such cancellation or repurchase the taxpayer has not received or become entitled to receive any compensation or consideration other than the repayment of any portion of the purchase price actually paid by him;
nF) Deleted by section 12 of Act 129 of 1991;
nG) [deleted by the Taxation Laws Amendment Act No. 8 of 2007];
nH) [deleted by the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)];
o) any form of remuneration-
i) as defined in paragraph 1 of the Fourth Schedule, derived by any person as an officer or crew member of a ship engaged -
aa) in the international transportation for reward of passengers or goods; or
bb) in the prospecting exploration or mining (including surveys and other work of a similar nature) for any minerals (including natural oils) from the seabed outside the Republic, where such officer or crew member is employed on board such ship solely for the purposes of the 'passage' of such ship, as defined in the Marine Traffic Act, 1981 (Act No. 2 of 1981),
if such person was outside the Republic for a period or periods exceeding 183 full days in aggregate during the year of assessment; or
ii) received by or accrued to any employee during any year of assessment by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument or allowance, including any amount referred to in paragraph (1) of the definition of gross income in section 1 or an amount referred to in section 8, 8B or 8C in respect of services rendered outside the Republic by that employee for or on behalf of any employer, if that employee was outside the Republic –
aa) for a period or periods exceeding 183 full days in aggregate during any period of 12 months; and
bb) for a continuous period exceeding 60 full days during that period of 12 months, and those services were rendered during that period or periods: Provided that –
A) for purposes of this subparagraph, a person who is in transit through the Republic between two places outside the Republic and who does not formally enter the Republic through a port of entry as contemplated in section 9(1) of the Immigration Act, 2002 (Act No. 13 of 2002), or at any other place as may be permitted by the Director General of the Department of Home Affairs or the Minister of Home Affairs in terms of that Act, shall be deemed to be outside the Republic;
B) the provisions of this subparagraph shall not apply in respect of any remuneration derived in respect of the holding of any office or from services rendered for or on behalf of any employer, as contemplated in section 9(1)(e); and
C) for the purposes of this subparagraph, where remuneration is received by or accrues to any employee during any year of assessment in respect of services rendered by that employee in more than one year of assessment, the remuneration is deemed to have accrued evenly over the period that those services were rendered;
p) any amount received by or accrued to any person who is not a resident, for services rendered or work or labour done by him outside the Republic for or on behalf of any employer in the national or provincial sphere of Government, or any municipality in the Republic, any national or provincial public entity if not less than 80 per cent of the expenditure of such entity is defrayed directly or indirectly from funds voted by Parliament, if such amount is chargeable with income tax in the country in which he is ordinarily resident and the income tax so chargeable is borne by himself and is not paid on his behalf by the Government, the municipality concerned or such public entity;
q) any bona fide scholarship or bursary granted to enable or assist any person to study at a recognized educational or research institution: Provided that if any such scholarship or bursary has been so granted by an employer or an associated institution (as respectively defined in paragraph 1 of the Seventh Schedule) to an employee (as defined in the said paragraph) or to a relative of such employee, the exemption under this paragraph shall not apply--
i) in the case of a scholarship or bursary granted to so enable or assist any such employee, unless the employee agrees to reimburse the employer for any scholarship or bursary granted to that employee if that employee fails to complete his or her studies for reasons other than death, ill-health or injury;
ii) in the case of a scholarship or bursary granted to enable or assist any such relative of an employee so to study-
aa) if the remuneration derived by the employee during the year of assessment exceeded R60 000; and
bb) to so much of any scholarship or bursary contemplated in this subparagraph as in the case of any such relative exceeds R3 000 during the year of assessment;
qA) [para (qA) deleted by s.12(1)(j) of Act No 129 of 1991];
r) any gratuity (other than a leave gratuity) received by or accrued to any person from public funds upon his retirement from any office or employment under the Government, including the Railway Administration and any provincial administration, or from the funds of the Land and Agricultural Bank of South Africa upon his retirement as a member of the board of the said Bank, which the Treasury declares to be free of tax;
s) [deleted by the Revenue Laws Amendment Act of 2003]
t) the receipts and accruals--
i) of the Council for Scientific and Industrial Research;
ii) of the South African Inventions Development Corporation;
iii) of the South African National Roads Agency Limited incorporated in terms of section 3 of the South African National Roads Agency Limited and National Roads Act, 1998 (Act No. 7 of 1998);
iv) deleted by section 10(g) of Act No. 28 of 1997
v) of the Armaments Development and Production Corporation of South Africa Limited, established under section 2 of the Armaments Development and Production Act, 1968 (Act No. 57 of 1968);
vi) of any company during any period during which all the issued shares of such company are held by the Corporation referred to in subparagraph (v), if the operations of such company are conducted in pursuance of, or are ancillary or complementary to, the objects of the said Corporation:
vii) of any traditional council or traditional community established or recognized or deemed to have been established or recognized in terms of the Traditional Leadership and Governance Framework Act, 2003 (Act No. 41 of 2003), or any tribe as defined in section 1 of that Act: Provided that the Minister may by notice in the Gazette determine that those receipts and accruals shall not be exempt with effect from any year of assessment commencing on or after a date to be determined by the Minister in such notice;
viii) of any regional electricity distributor that is wholly owned by any person that is exempt from normal tax during any year of assessment commencing before 1 January 2014, or before a later date that may be determined by the Minister by notice in the Gazette;
ix) of any water services provider;
Provided that any entity contemplated in this paragraph must comply with such reporting requirements as the Commissioner may determine;
x) deleted by s.18 of Act No. 53 of 1999
xi) deleted by s.21 of Act No. 30 of 2000
xii) deleted by s.9(1)(f) of Act No. 21 of 1994
xiii) deleted by Income Tax Act No 38 of 1996
xiv) deleted by the Revenue Laws Amenendment Act, 74 of 2002
tA) [deleted by the Revenue Laws Amendment Act, 2007 (Act No. 35 of 2007];
u) any amount received by or accrued to any person-
i) from or on behalf of such person's spouse or former spouse by way of alimony or allowance or maintenance of such person under an order of judicial separation or divorce granted in consequence of proceedings instituted after the twenty-first day of March, 1962, or under any agreement of separation entered into after that date; or
ii) [deleted by section 13 of Taxation Laws Amendment Act No. 17 of 2009]
v) [deleted by section 10(1)(s) of Act No. 141 of 1992]
w) deleted by section 29(e) of Act No. 30 of 1998
x) [deleted by the Taxation Laws Amendment Act, No. 7 of 2010]
y) any government grant or government scrapping payment received or accrued in terms of any programme or scheme which has been approved in terms of the national annual budget process and has been identified by the Minister by notice in the Gazette with effect from a date specified by the Minister in that notice including any date that precedes the date of such notice) for purposes of this paragraph, having regard to—
(i) whether the programme or scheme meets government policy priorities and objectives with respect to—
(aa) the encouragement of economic growth and investment;
(bb) the promotion of employment creation;
(cc) the development of public infrastructure and transport;
(dd) the promotion of public health;
(ee) the development of innovation and technology;
(ff) the provision of housing and basic services; or
(gg) the provision of relief in the case of natural disasters;
(ii) the extent to which the programme or scheme will support the policy priorities and objectives contemplated in subparagraph (i);
(iii) the financial implications for government should government grants or government scrapping payments in terms of that programme or scheme be exempt from tax; and
(iv) whether the tax implications were taken into account in determining the appropriation or payment in respect of that programme or scheme;’’;
yA) any amount received by or accrued to any person in respect of goods or services provided to beneficiaries in terms of an official development assistance agreement that is binding in terms of section 231(3) of the Constitution of the Republic of South Africa, 1996, to the extent—
aa) that amount is received or accrued in relation to projects that are approved by the Minister after consultation with the Minister of Foreign Affairs;
bb) that agreement provides that those receipts and accruals of that person must be exempt; and
cc) the Minister announces that those receipts and accruals are exempt by notice in the Gazette.
z) [deleted by the Revenue Laws Amendment Act No. 60 of 2008];
zA) any amount by way of rebate or other assistance received by or accrued to or in favour of any person under any scheme for the promotion or financing of exports which is for the purposes of this paragraph approved by the Minister of Trade and Industry with the concurrence of the Minister of Finance.
Provided that where the person entitled to claim such amount from the State has, under an agreement directly connected with the export trade carried on by him, agreed to pay the whole or any portion of such amount to any other person, the exemption under this paragraph shall also apply to the whole or such portion of such amount received by or accrued to such other person under the said agreement;
zB) [deleted by the Taxation Laws Amendment Act No. 8 of 2007];
zC) [deleted by Revenue Laws Amendment Act No. 31 of 2005];
zD) [deleted by the Revenue Laws Amendment Act No. 60 of 2008];
zE) any amount received by or accrued to the Small Business Development Corporation Limited, by way of any subsidy or assistance payable by the State;
zF) deleted by the Revenue Laws Amenentment Act, 74 of 2002
zG) any amount received by or accrued to a person by way of a subsidy payable by the State under any scheme designed to promote the production of films (as defined in section24F):
Provided that where that person has agreed to pay the whole or any portion of that amount to any film owner (as defined in section 24F) that is the owner of the film in respect of which the subsidy is payable, the exemption under this paragraph must also apply to the whole or that portion of the amount received by or accrued to that film owner;
zH) any amount received by or accrued to or in favour of any person from the State in terms of--
i) [deleted by Taxation Laws Amendment No. 9 of 2006];
ii) [deleted by Taxation Laws Amendment No. 9 of 2006]
iii) Programme, which came into operation on 1 October 1993 by way of a grant;
iv) the Small/Medium Manufacturing Development Programme, which came into operation on 1 October 1996 by way of a grant;
v) the Tax Holiday Scheme contemplated in section 37H, which came into operation on 1 October 1996 by way of a grant.
vi) the Small, Medium Enterprise Development Programme, which came into operation on 1 September 2000; and
vii) the Critical Infrastructure Programme, which came into operation on 1 September 2000.
zI) any amount received by or accrued to or in favour of any person from the Government, where-
i) that amount is granted for the performance by that person of its obligations pursuant to a Public Private Partnership, and
ii) that person is required in terms of that Public Private Partnership to expend an amount at least equal to that amount in respect of any improvements on land or to buildings owned by any sphere of government or over which any sphere of government holds a servitude.
iii) *[deleted by Revenue Laws Amendment Act No. 32 of 2004]
zJ) any amount received by or accrued to or in favour of a registered micro business as defined in the Sixth Schedule, from the carrying on of a business in the Republic, other than an amount received by or accrued to a natural person registered as a micro business that constitutes—
i) investment income as defined in paragraph 1 of the Sixth Schedule; or
ii) remuneration as defined in the Fourth Schedule.
2) Notwithstanding the exemptions provided for in paragraphs (h) and (k) of subsection (1)--
a) [deleted by the Taxation Laws Second Amendment Act, 2008 (Act No. 4 of 2008)]
b) the said exemptions shall not apply in respect of any portion of an annuity.
3) The exemptions from tax provided by any paragraph of subsection (1) shall not extend to-
a) any payments out of the receipts, accruals amounts or profits mentioned in such paragraph; or
b) any tax leviable under this Act in respect of any taxable capital gain determined in accordance with the Eighth Schedule.