1)
For the purposes of this Schedule, unless the context otherwise indicates--
"employee" means--
a) any person (other than a company) who receives any remuneration or to whom any remuneration accrues;
b) any person who receives any remuneration or to whom any remuneration accrues by reason of any services rendered by such person to or on behalf of a labour broker;
c) any labour broker;
d) any person or class or category of person whom the Minister of Finance by notice in the Gazette declares to be an employee for the purposes of this definition; and
e) any personal service provider; and
f) [deleted by the Revenue Laws Amendment Act No. 60 of 2008] ; and
g) any director of a private company who is not otherwise included in terms of paragraph (a);
"employees' tax" means the tax required to be deducted or withheld by an employer in terms of paragraph 2 from remuneration paid or payable to an employee;
"employees' tax certificate" means a certificate required to be issued by an employer in terms of paragraph 13;
"employer" means any person (excluding any person not acting as a principal, but including any person acting in a fiduciary capacity or in his capacity as a trustee in an insolvent estate, an executor or an administrator of a benefit fund, pension fund, pension preservation fund, provident fund, provident preservation fund, retirement annuity fund or any other fund) who pays or is liable to pay to any person any amount by way of remuneration, and any person responsible for the payment of any amount by way of remuneration to any person under the provisions of any law or out of public funds (including the funds of any provincial council or any administration or undertaking of the State) or out of funds voted by Parliament or a provincial council;
"labour broker" means any natural person who conducts or carries on any business whereby such person for reward provides a client of such business with other persons to render a service or perform work for such client, or procures such other persons for the client, for which services or work such other persons are remunerated by such person;
"month" means any of the twelve portions into which any calendar year is divided;
"personal service company"
[deleted by the Revenue Laws Amendment Act No. 60 of 2008]
"personal service trust"
[deleted by the Revenue Laws Amendment Act No. 60 of 2008]
"personal service provider" means any company or trust, where any service rendered on behalf of such company or trust to a client of such company or trust is rendered personally by any person who is a connected person in relation to such company or trust, and—
a) such person would be regarded as an employee of such client if such service was rendered by such person directly to such client, other than on behalf of such company or trust; or
b) where those duties must be performed mainly at the premises of the client, such person or such company or trust is subject to the control or supervision of such client as to the manner in which the duties are performed or are to be performed in rendering such service; or
c) where more than 80 per cent of the income of such company or trust during the year of assessment, from services rendered, consists of or is likely to consist of amounts received directly or indirectly from any one client of such company or trust, or any associated institution as defined in the Seventh Schedule to this Act, in relation to such client,
except where such company or trust throughout the year of assessment employs three or more full-time employees who are on a full-time basis engaged in the business of such company or trust of rendering any such service, other than any employee who is a shareholder or member of the company or trust or is a connected person in relation to such person;
"provisional tax" means any payment required to be made in terms of paragraph 17;
"provisional taxpayer" means--
a) any person (other than a company) who derives by way of income any amount which does not constitute remuneration or an allowance or advance contemplated in section 8(1);
b) any company; and
c) any person who is notified by the Commissioner that he or she is a provisional taxpayer,
but shall exclude-
aa) any public benefit organisation as contemplated in paragraph (a) of the definition of 'public benefit organisation' in section 30(1) that has been approved by the Commissioner in terms of section 30(3);
bb) any recreational club as contemplated in the definition of 'recreational club' in section 30A(1) that has been approved by the Commissioner in terms of section 30A(2); and
cc) any body or association contemplated in section 10(1)(e)
"remuneration" means any amount of income which is paid or is payable to any person by way of any salary, leave pay, wage, overtime pay, bonus, gratuity, commission, fee, emolument pension, superannuation allowance, retiring allowance or stipend, whether in cash or otherwise and whether or not in respect of services rendered, including--
a) any amount referred to in paragraph (a), (c), (cA),(d), (e), (eA) or (f) of the definition of "gross income" in section one of this Act;
b) any amount required to be included in such person's gross income under paragraph (i) of that definition;
bA) any allowance or advance, which must be included in the taxable income of that person in terms of section 8(1)(a)(i), other than-
i) an allowance in respect of which paragraph (c) or (cA) applies; or
ii) an allowance or advance paid or granted to that person in respect of accommodation, meals or other incidental costs while that person is by reason of the duties of his or her office obliged to spend at least one night away from his or her usual place of residence in the Republic: Provided that where-
aa) such an allowance or advance was paid or granted to a person during any month in respect of a night away from his or her usual place of residence; and
bb) that person has not by the last day of the following month either spent the night away from his or her usual place of residence or refunded that allowance or advance to his or her employer,
that allowance or advance is deemed not to have been paid or granted to that person during that first-mentioned month in respect of accommodation, meals or other incidental costs, but is deemed to be an amount which has become payable to that person in that following month in respect of services rendered by that person;
c) 50 per cent of the amount of any allowance referred to in section 8(1)(d) granted to the holder of a public office contemplated in section 8(1)(e) and
i) the amount of any allowance referred to in section 8(1)(d) granted to the holder of a public office contemplated in section 8(1)(e),
but not including--
i) [Sub-para. (i) deleted by s. 34 of Act No. 36 of 1996];
ii) any amount paid or payable in respect of services rendered or to be rendered by any person (other than a person who is not a resident or an employee contemplated in paragraph (b), (c), (d) (e) or (f)of the definition of "employee") in the course of any trade carried on by him independently of the person by whom such amount is paid or payable and of the person to whom such services have been or are to be rendered: Provided that for the purposes of this paragraph a person shall not be deemed to carry on a trade independently as aforesaid
aa) if the services are required to be performed mainly at the premises of the person by whom such amount is paid or payable or of the person to whom such services were or are to be rendered and the person who rendered or will render the services is subject to the control or supervision of any other person as to the manner in which his or her duties are performed or to be performed or as to his hours of work.
: Provided further that a person will be deemed to be carrying on a trade independently as aforesaid if he throughout the year of assessment employs three or more employees who are on a full time basis engaged in the business of such person of rendering any such service, other than any employee who is a connected person in relation to such person;
iii) any pension or additional pension under the Aged Persons Act 1967 (Act No. 81 of 1967), or the Blind Persons Act, 1968 (Act No. 26 of 1968), any disability grant or additional or supplementary allowance under the Disability Grants Act 1968 (Act No. 27 of 1968), or any grant or contribution under the provisions of section 89 of the Children's Act, 1960 (Act No. 33 of 1960);
iv) Deleted by section 44 of Act 101 of 1990;
v) Deleted by section 6 of Act 30 of 1984;
vi) any amount paid or payable to any employee wholly in reimbursement of expenditure actually incurred by such employee in the course of his employment;
vii) deleted by section 19 of Act 19 of 2001;
viii) any annuity under an order of divorce or decree of judicial separation or under any agreement of separation;
80 per cent of the amount of any allowance or advance in respect of transport expenses referred to in section 8(1)(b), other than any such allowance or advance contemplated in section 8(1)(b)(iii) which is based on the actual distance travelled by the recipient, and which is calculated at a rate per kilometre which does not exceed the appropriate rate per kilometre fixed by the Minister of Finance under section 8(1)(b)(iii);
d) any gain determined in terms of section 8B, which must be included in that person’s income under that section;
e) any gain determined in terms of section 8C which is required to be included in the income of that person;
f) any amount deemed to be income accrued to that person in terms of section 7(11).
"representative employer" means--
a) in the case of any company, the public officer of that company, or, in the event of such company being placed in liquidation or under judici
b) al management, the liquidator or judicial manager, as the case may be;
c) in the case of any divisional council, municipal council, village management board or like authority or any body corporate or unincorporate (other than a company or a partnership) any manager, secretary, officer or other person responsible for paying remuneration on behalf of such council, board, authority or body;
d) in the case of a person under legal disability, any guardian, curator, administrator or other person having the management or control of the affairs of the person under legal disability; or
e) in the case of any employer who is not resident in the Republic, any agent of such employer having authority to pay remuneration,
who is a resident, but nothing in this definition shall be construed as relieving any person from any liability, responsibility or duty imposed upon him by this Schedule; and
"tax threshold" in relation to a natural person means the maximum amount of taxable income of that person in respect of a year of assessment which would result in no tax payable when the rates of tax contemplated in section 5 of this Act and the rebates contemplated in section 6 of this Act for that year of assessment are applied to the taxable income of that person;