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Income Tax Act, 1962 (Act No. 58 of 1962)

Chapter II: The Taxes

Part I : Normal Tax

7B. Timing of accrual and incurral of variable remuneration

 

(1) For the purposes of this section—

 

"employee"

means an employee as defined in paragraph 1 of the Fourth Schedule;

 

"employer"

means an employer as defined in paragraph 1 of the Fourth Schedule;

 

"variable remuneration"

means—

(a) overtime pay, bonus or commission contemplated in the definition of "remuneration" in paragraph 1 of the Fourth Schedule;
(b) an allowance or advance paid in respect of transport expenses as contemplated in section 8(1)(b)(ii) or (iii);
(c) any amount which an employer has during any year of assessment become liable to pay to an employee in consequence of the employee having during such year become entitled to any period of leave which had not been taken by the employee during that year.
(d) any night shift allowance;
(e) any standby allowance; or
(f) any amount paid or granted in reimbursement of any expenditure as contemplated in section 8(1)(a)(ii).

[Section 7B substituted by section 3(1) of the Taxation Laws Amendment Act, 2019 (Act No. 34 of 2019), GG 42951, dated 15 January 2020 -  comes into operation 1 March 2020 and applies in respect of amounts accrued or expenditure incurred on or after that date (Section 3(2)]

 

(2) In determining the taxable income derived by any person during a year of assessment, any amount to which an employee becomes entitled from an employer in respect of variable remuneration is deemed to—
(a) accrue to the employee; and
(b) constitute expenditure incurred by the employer,

on the date during the year of assessment on which the amount is paid to the employee by the employer.

 

[Section 7B inserted by the Taxation Laws Amendment Act, 2012 (Act No. 22 of 2012) - effective 1 March 2013]