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Income Tax Act, 1962 (Act 58 of 1962)

Regulations under Section 13bis (4) of the Income Tax Act 1962

Schedule

 

 

The State President has, by virtue of section 13bis(4) of the Income Tax Act, 1962 (Act No. 58 of 1962), been pleased to make the regulations contained in the Schedule hereto.

 

1) In these regulations, unless the context otherwise indicates, any word or expression to which a meaning has been assigned in the Income Tax Act, 1962 (Act No. 58 of 1962), bears the meaning so assigned thereto, and—

 

"first year of assessment" means—

a) in relation to an hotel building, the year of assessment during which such building is brought into use for the purpose of carrying on therein the trade of hotelkeeper, or
b) in relation to improvements to an hotel building, the year of assessment during which such improvements are completed;

 

"one-star hotel", "two-star hotel", "three star hotel", "four star hotel" or "five-star hotel" means an hotel which is on the last day of the relevant year of assessment graded by the Board established under the Hotels Act 1965 (Act No. 70 of 1965) as a one-star hotel, a two-star hotel, a three-star hotel, a four-star hotel or a five-star hotel, as the case may be;

 

"relevant cost" means, in relation to any hotel building (or portion thereof) or to any improvements (or portion thereof) to any hotel building, so such of the cost of such building (or portion thereof) or of such improvements (or portion thereof), as the case may be, as qualifies for an allowance under section 13bis(2) of the Act;

 

"the Act" means the Income Tax Act, 1962 (Act No. 58 of 1962).

 

2.1) Any allowance made under section 13bis(2) of the Act in respect of the relevant cost of any hotel building (or portion thereof) or of any improvements (or portion thereof) to any hotel building shall be a percentage of such cost.

 

2.2) Such allowance shall, subject to the provisions of the Act, be calculated in accordance with the Tables below.

 

Table I

 

In respect of any year of assessment ended not later than 29 February 1980

Rate of allowance (to be calculated on the relevant cost) in the case of-


A

1-star hotel

A

2-star hotel

A

3-star hotel

A

4-star hotel

A

5-star hotel

A.   Where that year of assessment is the first year of assessment or any of the four years of assessment immediately succeeding the first year of assessment

 

2%

3%

5%

6%

8%

B.   Where the year of assessment is a year of assessment following the five years of assessment referred to in A above

2%

3%

3%

3%

3%

 

Table II

 

In respect of any year of assessment ended or ending on or after 28 February 1981

Rate of allowance (to be calculated on the relevant cost) in the case of -


 

1-star hotel

A

2-star hotel

A

3-star hotel

A

4-star hotel

A

5-star hotel

A.   Where that year of assessment is the first year of assessment or any of the nine years of assessment immediately succeeding the first year of assessment

 

2%

3%

5%

6%

8%

B.   Where the year of assessment is a year of assessment following the 10 years of assessment referred to in A above

2%

3%

3%

3%

-