National Environmental Management Act, 1998 (107 of 1998)
R 385
"foreign partnership"
in respect of any year of assessment, means any partnership, association, body of persons or entity formed or established under the laws of any country other than the Republic if—
| (a) | for the purposes of the laws relating to tax on income of the country in which that partnership, association, body of persons or entity is formed or established— |
| (i) | each member of the partnership, association, body of persons or entity is required to take into account the member’s interest in any amount received by or accrued to that partnership, association, body of persons or entity when that amount is received by or accrued to the partnership, association, body of persons or entity; and |
| (ii) | the partnership, association, body of persons or entity is not liable for or subject to any tax on income, other than a tax levied by a municipality, local authority or a comparable authority, in that country; or |
[Paragraph (a)(ii) substituted by section 3(1)(g) of Act No. 25 of 2015, deemed to have come into operation on 31 December 2015]
| (b) | where the country in which that partnership, association, body of persons or entity is formed or established does not have any applicable laws relating to tax on income— |
(i) any amount—
| (aa) | that is received by or accrued to; or |
| (bb) | of expenditure that is incurred by, |
the partnership, association, body of persons or entity is allocated concurrently with the receipt, accrual or incurral to the members of that partnership, association, body of persons or entity in terms of an agreement between those members; and
| (ii) | no amount distributed to a member of a partnership, association, body of persons or entity may exceed the allocation contemplated in subparagraph (i) after taking into account any prior distributions made by the partnership, association, body of persons or entity; |
[Definition substituted by section 7(1)(l) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011) - effective 1 October 2011 in the case of any foreign partnership that is established or formed before 24 August 2010, and as from the date of establishment or formation in the case of any foreign partnership that is established or formed on or after 24 August 2010]
