in relation to any year or period of assessment, means,
i) in the case of any resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such resident, or
ii) in the case of any person other than a resident, the total amount, in cash or otherwise, received by or accrued to or in favour of such person from a source within or deemed to be within the Republic, during such year or period of assessment, excluding receipts or accruals of a capital nature, but including, without in any way limiting the scope of this definition, such amounts (whether of a capital nature or not) so received or accrued as are described hereunder, namely-
a) any amount received or accrued by way of annuity, including any amount contemplated in the definition of "living annuity" or the definition of "annuity amount" in section 10A(1);
b) any amount payable to the taxpayer –
i) by the spouse or former spouse of that taxpayer, under any judicial order or written agreement of separation or under any order of divorce, by way of alimony or allowance or maintenance of the taxpayer ; or
ii) in terms of any maintenance order for the maintenance of a child as contemplated in section 15(1) of the Maintenance Act, 1998 (Act No. 99 of 1998);
c) any amount, including any voluntary award, received or accrued in respect of services rendered or to be rendered or any amount (other than an amount referred to in section 8(1)) received or accrued in respect of or by virtue of any employment or the holding of any office: Provided that--
i) the provisions of this paragraph shall not apply in respect of any benefit or advantage in respect of which the provisions of paragraph (i) apply:
ii) any amount received by or accrued to or for the benefit of any person in respect of services rendered or to be rendered by any other person shall for the purposes of this definition be deemed to have bean received by or to have accrued to the said other person;
[sub-paragraphs (iii), (iv), (v) and (vi) deleted by the Taxation Laws Amendment Act, 2002]
cA) any amount received by or accrued to any person who--
i) is a natural person;
ii) is or was a labour broker as defined in the Fourth Schedule (other than a labour broker in respect of which a certificate of exemption has been issued in terms of that Schedule);
iii) is or was a personal service provider as defined in the Fourth Schedule; or
iv) was a personal service company or personal service trust as defined in the Fourth Schedule prior to section 66 of the Revenue Laws Amendment Act, 2008, coming into operation,
as compensation for any restraint of trade imposed on such person.
d) any amount, including any voluntary award, received or accrued in respect of the relinquishment, termination, loss, repudiation, cancellation or variation of any office or employment or of any appointment (or right or claim to be appointed) to any office or employment: Provided that--
i) the provisions of this paragraph shall not apply to any lump sum award from any pension fund, pension preservation fund, provident fund , provident preservation fund or retirement annuity fund;
ii) any such amount which becomes payable in consequence of or following upon the death of any person shall be deemed to be an amount which accrued to such person immediately prior to his death;
e) a retirement fund lump sum benefit or retirement fund lump sum withdrawal benefit;
eA) where, in relation to a member who effectively remains in the employment of the same employer, or the dependants or nominees of a deceased member--
i) any amount in a fund contemplated in paragraph (a) or (b) of the definition of 'pension fund', the rules of which provide that on retirement of such member a portion of his benefit has to be taken in the form of an annuity, has been transferred to a fund, the rules of which entitle such member, or the dependants or nominees of a deceased member, to a benefit on retirement in the form of a lump sum exceeding one-third of the capitalised value of all benefits (including lump sum payments and annuities); or
ii) a fund contemplated in paragraph (a) or (b) of the definition of 'pension fund', the rules of which provide that on retirement of such member a portion of his benefit has to be taken in the form of an annuity, is wholly or partially converted by way of an amendment to its rules or otherwise, to entitle such member, or the dependants or nominees of a deceased member, to a benefit on retirement in the form of a lump sum exceeding one-third of the capitalised value of all benefits (including lump sum payments and annuities); or
iii) any amount in a fund contemplated in paragraph (a) or (b) of the definition of 'pension fund' has become payable to the member or is being utilised to redeem a debt,
an amount equal to two-thirds--
aa) of the amount so transferred; or
bb) in the case of a conversion, of the amount representing the amount converted for the benefit or ultimate benefit of the member or the dependants or nominees of the deceased member, and such amount shall be deemed to have been received by or accrued to or in favour of such member, dependants or nominees, as the case may be: Provided that where a court granting a decree of divorce in respect of such member has made an order that any part of such amount shall be paid to the former spouse of such member, as provided for in section 7(8) of the Divorce Act, 1979 (Act No. 70 of 1979), such part shall for the purposes of this paragraph be deemed to be an amount converted for the benefit or ultimate benefit of such member; or
cc) in the case of an amount becoming payable to a member or being utilised to redeem a debt, of the amount so payable or is utilised:
Provided that the Commissioner may, on application by a fund, in particular circumstances, increase the proportion of one-third contemplated in subparagraph (i) up to a maximum of one-half on the following conditions:
a) that on 12 March 1997 the proportion of the benefit on retirement in such fund that could be taken in the form of a lump sum was greater than one-third, but not greater than one-half, of the total capitalized value of all benefits;
b) that the rules of such fund are amended so that the maximum proportion of such member's benefit on retirement that can be taken in the form of a lump sum is one-third of the total capitalized value of all benefits; and
c) such further conditions as the Commissioner may determine from time to time;
eB) [deleted by the Taxation Laws Amendment Act, No. 17 of 2009];
eC) [deleted by the Taxation Laws Amendment Act, No. 17 of 2009];
f) any amount received or accrued in commutation of amounts due under any contract of employment or service;
g) any amount received or accrued from another person, as premium or like consideration--
i) for the use or occupation or the right of use or occupation of land or buildings; or
ii) for the use or the right of use of plant or machinery; or
ii(bis) for the use or the right of use of any motion picture film or any film or video tape or disc for use in connection with television or any sound recording or advertising matter connected with such motion picture film, film or video tape or disc; or
iii) for the use or right of use of any patent as defined in the Patents Act, 1978 (Act No. 57 of 1978), or any design as defined in the Designs Act, 1993 (Act No. 195 of 1993), or any trade mark as defined in the Trade Marks Act, 1993 (Act No. 194 of 1993), or any copyright as defined in the Copyright Act, 1978 (Act No. 98 of 1978), or any model, pattern, plan, formula or process or any other property or right of a similar nature;
gA) any amount received or accrued from another person as consideration (or payment of like nature) for the imparting of or the undertaking to impart any scientific, technical, industrial or commercial knowledge or information, or for the rendering of or the undertaking to render any assistance or service in connection with the application or utilization of such knowledge or information;
h) in the case of any person to whom, in terms of any agreement relating to the grant to any other person of the right of use or occupation of land or buildings, or by virtue of the cession of any rights under any such agreement, there has accrued in any such year or period the right to have improvements effected on the land or to the buildings by any other person--
i) the amount stipulated in the agreement as the value of the improvements or as the amount to be expended on the improvements; or
ii) if no amount is so stipulated, an amount representing the fair and reasonable value of the improvements;
i) the cash equivalent, as determined under the provisions of the Seventh Schedule, of the value during the year of assessment of any benefit or advantage granted in respect of employment or to the holder of any office, being a taxable benefit as defined in the said Schedule, and any amount required to be included in the taxpayer's income under section 8A;
j) so much of the sum of any amounts received or accrued during any year of assessment in respect of disposals of assets the cost of which has in whole or in part been included in capital expenditure taken into account (whether under this Act or any previous Income Tax Act) for the purposes of any deduction in respect of any mine under section 15(a) of this Act or the corresponding provisions of any previous Income Tax Act, as exceeds the sum of so much of any capital expenditure as in the case of such mine is unredeemed at the commencement of the said year of assessment and the capital expenditure that is incurred during that year in respect of such mine, as determined before applying the definition of "capital expenditure incurred" in section 36(11);
jA) any amount received by or accrued to any person during the year of assessment from the disposal of any asset manufactured, produced, constructed or assembled by that person, which is similar to any other asset manufactured, produced, constructed or assembled by that person for purposes of manufacture, sale or exchange by that person or on that person’s behalf;
k) any amount received or accrued by way of a dividend: Provided that where any foreign dividend declared by a foreign company—
i) is received by or accrues to a portfolio of a collective investment scheme referred to in paragraph (e)(i) of the definition of ‘company’; and
ii) is distributed by that portfolio by way of a dividend, or a portion of a dividend, to any person who is entitled to that dividend by virtue of being a holder of any participatory interest in that portfolio,
that foreign dividend shall, to the extent that it is declared to that person as contemplated in subparagraph (ii), be deemed to have been declared by that foreign company directly to that person and to be a foreign dividend which is received by or accrued to that person;
l) any amount received or accrued by way of grant or subsidy in respect of any soil erosion works referred to in section 17A(1) or any of the matters mentioned in items (a) to (i), inclusive, of paragraph 12(1) of the First Schedule;
lA) any amount received by or accrued to a company or association as contemplated in subparagraph (ii) of section 11E;
lB) [deleted by Revenue Laws Second Amendment Act No. 32 of 2005];
m) : Provided that where-
i) any amount received or accrued under or upon the surrender or disposal of any such policy falls to be included in the taxpayer’s gross income, the amount so to be included in the taxpayer’s gross income shall be reduced by the amount of any loan or advance under or upon security of the policy which has been included in the taxpayer’s gross income, whether in the current or any previous year of assessment;
ii) any such policy has been terminated by the insurer and a paid-up policy has been issued, the terminated policy and the paid-up policy shall for the purposes of this paragraph be deemed to be one and the same policy;
iii) a lump sum that has been received by or has accrued to the taxpayer under or upon the surrender or disposal of such policy, the amount that falls to be included in the taxpayer’s gross income shall be reduced by an amount (not exceeding such lump sum) equal to so much of the premiums paid by the taxpayer under such policy as has not previously qualified for deduction from the taxpayer’s income;
and
iv) any amount in respect of a policy as contemplated in—
aa) section 11(w) if that policy was concluded prior to 1 January 2011; or
bb) section 11(w)(ii) if that policy was concluded on or after 1 January 2011,
is received by or accrues to a person other than the taxpayer subsequent to a cession of that policy to that other person, this paragraph does not apply;
mA) any amount in respect of a policy as contemplated in-
i) section 11(w) if that policy was concluded prior to 1 January 2011; or
ii) section 11(w)(ii) if that policy was concluded on or after 1 January 2011,
that is received by or accrues to a person other than the taxpayer contemplated in paragraph (m) subsequent to a cession of that policy, reduced by an amount not exceeding the amount so received or accrued equal to so much of the premiums paid by any person that ranked for deduction but has been disallowed solely by reason of the fact that the amount exceeded the amount of the deduction allowable in respect of the year of assessment;
nA) any amount which in terms of any other provision of this Act is specifically required to be included in the taxpayer's income, and that amount must-
i) for the purposes of this paragraph be deemed to have been received by or to have accrued to the taxpayer; and
ii) in the case of any amount required to be included in the taxpayer’s income in terms of section 8(4), be deemed to have been received or accrued from a source within the Republic notwithstanding that such amounts may have been recovered or recouped outside the Republic:
Provided that where during any year of assessment the taxpayer has become entitled to any amount which is payable on a date or dates falling after the last day of such year, there shall be deemed to have accrued to him during such year--
a) if the taxpayer has on or before 23 May 1990 submitted a return of income drawn on the basis that the present value of such amount has accrued to him during such year, the present value of such amount; or
b) in any other case, such amount:
Provided further that where the provisions of paragraph (a) of the first proviso are applicable, there shall be deemed to have accrued to the taxpayer during any subsequent year of assessment in which he receives such amount or any portion thereof, a sum equal to the difference between such amount or portion thereof and the present value of such amount or portion thereof so deemed to have accrued to him during the first-mentioned year of assessment;