Acts Online
GT Shield

Income Tax Act, 1962 (Act 58 of 1962)

Schedules

Tenth Schedule: Oil and Gas Activities

1. Definitions

 

For purposes of this Schedule, unless the context otherwise indicates—

 

‘exploration’

means the acquisition, processing and analysis of geological and geophysical data or the undertaking of activities in verifying the presence or absence of hydrocarbons (up to and including the appraisal phase) conducted for the purpose of determining whether a reservoir is economically feasible to develop;

[Definition amended by section 154(a) of Act No. 31 of 2013]

 

‘gas’

means any subsoil combustible gas, consisting primarily of hydrocarbons, other than hydrocarbons converted from bituminous shales or other stratified deposits of solid hydrocarbons;

 

‘oil’

means any subsoil combustible liquid consisting primarily of hydrocarbons, other than hydrocarbons converted from bituminous shales or other stratified deposits of solid hydrocarbons;

 

‘oil and gas company’

means any company that—

(i)        holds any oil and gas right;

(ii)        engages in exploration or post-exploration in terms of any oil and gas right;

[Subparagraph (ii) amended by section 154(b) of Act No. 31 of 2013]

 

‘oil and gas income’

means the receipts and accruals derived by an oil and gas company from—

(a) exploration in terms of any oil and gas right; or
(b) post-exploration in respect of any oil and gas right; or

[Paragraph (b) amended by section 154(c) of Act No. 31 of 2013]

 

‘oil and gas right’

means

(a) any reconnaissance permit, technical cooperation permit, exploration right, or production right as defined in section 1 of the Mineral and Petroleum Resources Development Act or any interest therein;
(b) any exploration right acquired by virtue of a conversion contemplated in item 4 of Schedule II to the Mineral and Petroleum Resources Development Act or any interest therein; or
(c) any production right acquired by virtue of a conversion contemplated in item 5 of Schedule II to the Mineral and Petroleum Resources Development Act or any interest therein.

[Definition amended by section 154(d) of Act No. 31 of 2013]

 

‘post-exploration’

means any activity carried out after the completion of the appraisal phase, including—

(a)        the separation of oil and gas condensates;

(b)        the drying of gas; and

(c)        the removal of non-hydrocarbon constituents,

to the extent that these processes are preliminary to refining.

[Definition amended by section 154(f) of Act No. 31 of 2013]

 

"refining"

[Definition deleted by Taxation Laws Amendment Act No. 17 of 2009]