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Contents

Long Title

Part I PRELIMINARY

Part II ADMINISTRATION

Part III IMPOSITION OF INCOME TAX

Part IV EXEMPTION FROM INCOME TAX

Part V DEDUCTIONS AGAINST INCOME

Part VI CAPITAL ALLOWANCES

Part VII ASCERTAINMENT OF CERTAIN INCOME

Part VIII ASCERTAINMENT OF STATUTORY INCOME

Part IX ASCERTAINMENT OF ASSESSABLE INCOME

Part X ASCERTAINMENT OF CHARGEABLE INCOME AND PERSONAL RELIEFS

Part XI RATES OF TAX

Part XII DEDUCTION OF TAX AT SOURCE

Part XIII ALLOWANCES FOR TAX CHARGED

Part XIV RELIEF AGAINST DOUBLE TAXATION

Part XV PERSONS CHARGEABLE

Husband and wife

Trustees, agents and curators

Part XVI RETURNS

Part XVII ASSESSMENTS AND OBJECTIONS

Part XVIII APPEALS

Part XIX COLLECTION, RECOVERY AND REPAYMENT OF TAX

Part XX OFFENCES AND PENALTIES

Part XXA Exchange of information under avoidance of double taxation arrangements and exchange of information arrangements

Part XXB INTERNATIONAL AGREEMENTS TO IMPROVE TAX COMPLIANCE

Part XXI MISCELLANEOUS

FIRST SCHEDULE Institution, authority, person or fund exempted

SECOND SCHEDULE Rates of tax

THIRD SCHEDULE

FOURTH SCHEDULE Name of bond, securities, stock or fund

FIFTH SCHEDULE Child relief

SIXTH SCHEDULE Number of years of working life of asset

SEVENTH SCHEDULE Advance rulings

EIGHTH SCHEDULE Information to be included in a request for information under Part XXA

Legislative History

Comparative Table

Comparative Table

 
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Adjustment of capital allowances, losses or donations between income subject to tax at different rates
37B.
—(1)  This section shall apply to any company whose income for any year of assessment is subject to tax at different rates.
(2)  Where, for any year of assessment, there are any unabsorbed allowances, losses or donations in respect of the income of a company subject to tax at a lower rate of tax to which this section applies, and there is any chargeable income of the company subject to tax at a higher rate of tax to which this section applies, those unabsorbed allowances, losses or donations shall be deducted against that chargeable income in accordance with the following provisions:
(a)
in the case where those unabsorbed allowances, losses or donations do not exceed that chargeable income multiplied by the adjustment factor, that chargeable income shall be reduced by an amount arrived at by dividing those unabsorbed allowances, losses or donations by the adjustment factor, and those unabsorbed allowances, losses or donations shall be nil; and
(b)
in any other case, those unabsorbed allowances, losses or donations shall be reduced by an amount arrived at by multiplying that chargeable income by the adjustment factor, and those unabsorbed allowances, losses or donations so reduced shall be added to, and be deemed to form part of, the corresponding allowances, losses or donations in respect of the income subject to tax at the lower rate of tax, for the next succeeding year of assessment and any subsequent year of assessment in accordance with section 23 or 37, as the case may be, and that chargeable income shall be nil.
(3)  Where, for any year of assessment, there are any unabsorbed allowances, losses or donations in respect of the income of a company subject to tax at a higher rate of tax to which this section applies, and there is any chargeable income of the company subject to tax at a lower rate of tax to which this section applies, those unabsorbed allowances, losses or donations shall be deducted against that chargeable income in accordance with the following provisions:
(a)
in the case where those unabsorbed allowances, losses or donations do not exceed that chargeable income divided by the adjustment factor, that chargeable income shall be reduced by an amount arrived at by multiplying those unabsorbed allowances, losses or donations by the adjustment factor, and those unabsorbed allowances, losses or donations shall be nil; and
(b)
in any other case, those unabsorbed allowances, losses or donations shall be reduced by an amount arrived at by dividing that chargeable income by the adjustment factor, and those unabsorbed allowances, losses or donations so reduced shall be added to, and be deemed to form part of, the corresponding allowances, losses or donations in respect of the income subject to tax at the higher rate of tax, for the next succeeding year of assessment and any subsequent year of assessment in accordance with section 23 or 37, as the case may be, and that chargeable income shall be nil.
(4)  Where a company to which this section applies ceases to derive income subject to tax at a lower rate of tax in the basis period for any year of assessment but derives income subject to tax at a higher rate of tax in that basis period, subsection (2) shall apply, with the necessary modifications, to any unabsorbed allowances, losses or donations in respect of the income of the company subject to tax at the lower rate of tax for any year of assessment subsequent to that year of assessment.
(5)  Where a company to which this section applies ceases to derive income subject to tax at a higher rate of tax in the basis period for any year of assessment but derives income subject to tax at a lower rate of tax in that basis period, subsection (3) shall apply, with the necessary modifications, to any unabsorbed allowances, losses or donations in respect of the income of the company subject to tax at the higher rate of tax for any year of assessment subsequent to that year of assessment.
(6)  Nothing in this section shall be construed as affecting the application of section 23 or 37 unless otherwise provided in this section.
(6A)  If, during the basis period for the year of assessment 2013 or any subsequent year of assessment (referred to in this subsection as the relevant year of assessment), a company only derives income that is exempt from tax, then subsection (3) shall, with the necessary modifications, apply to any year of assessment subsequent to the relevant year of assessment as if any sum allowable under section 37(3)(b), (c), (d) or (f) in respect of any donation made by that company during the basis period for the relevant year of assessment were unabsorbed donation in respect of the income of a company that is subject to tax at the rate of tax specified in section 43(1)(a).
(7)  In this section —
“adjustment factor”, in relation to any year of assessment, means the factor ascertained in accordance with the formula
where A
is the higher rate of tax for that year of assessment; and
B
is the lower rate of tax for that year of assessment;
“allowances” means allowances under section 16, 17, 18B, 18C, 19, 19A, 19B, 19C, 19D, 20, 21, 22 or 23 including unabsorbed allowances which arose in any year of assessment before the year of assessment 1994;
“chargeable income of the company subject to tax at a higher rate of tax” means income subject to tax at a higher rate of tax after deducting expenses, donations, allowances or losses allowable under this Act against that income;
“chargeable income of the company subject to tax at a lower rate of tax” means income subject to tax at a lower rate of tax after deducting expenses, donations, allowances or losses allowable under this Act against that income;
“donations” means donations which are deductible including any unabsorbed donations allowable under section 37;
“higher rate of tax” or “lower rate of tax” means the rate of tax under section 43(1)(a) or the concessionary rate of tax in accordance with —
(a)
any order made under section 13(12); or
(b)
section 13H, 43A, 43C (in respect of those relating to offshore general insurance business only), 43D, 43E, 43F, 43G, 43H, 43I, 43J, 43K, 43L (repealed), 43M (repealed), 43N, 43P, 43Q, 43R, 43S, 43T, 43U, 43V, 43W, 43X, 43Y, 43Z, 43ZA, 43ZB, 43ZC, 43ZD, 43ZE or 43ZF, or the regulations made thereunder, as the case may be;
“losses” means losses which are deductible under section 37 including unabsorbed losses incurred in respect of any year of assessment before the year of assessment 1994;
“unabsorbed allowances, losses or donations in respect of the income of a company subject to tax at a higher rate of tax” means the balance of such allowances, losses or donations after deducting expenses, donations, allowances or losses allowable under this Act against the income subject to tax at a higher rate of tax;
“unabsorbed allowances, losses or donations in respect of the income of a company subject to tax at a lower rate of tax” means the balance of such allowances, losses or donations after deducting expenses, donations, allowances or losses allowable under this Act against the income subject to tax at a lower rate of tax.
History for Provision '37B Adjustment of capital allowances, losses or donations between income subject to tax at different rates'.
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pr37B-.
30/04/1996
Formal Consolidation
30 April 1996
1996 RevEd
 
Compare versionsDiff

23/01/1998
Informal Consolidation
23 January 1998
Amended
Act 1 of 1998

14/08/1998
Informal Consolidation
14 August 1998
Amended
Act 31 of 1998

16/11/1998
Informal Consolidation
16 November 1998
Amended
Act 37 of 1998

03/09/1999
Informal Consolidation
31 August 1999
Amended
Act 32 of 1999

30/12/1999
Formal Consolidation
30 December 1999
1999 RevEd
 
Compare versionsDiff

18/01/2000
Informal Consolidation
07 September 2000
Amended
Act 24 of 2000

15/03/2000
Informal Consolidation
15 March 2000
Amended
Act 9 of 2000

07/09/2000
Informal Consolidation
07 September 2000
Amended
Act 24 of 2000

01/10/2000
Informal Consolidation
10 August 2001
Amended
Act 24 of 2001

31/01/2001
Informal Consolidation
10 August 2001
Amended
Act 24 of 2001

01/04/2001
Informal Consolidation
01 April 2001
Amended
Act 3 of 2001

01/06/2001
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

10/08/2001
Informal Consolidation
10 August 2001
Amended
Act 24 of 2001

13/10/2001
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

23/11/2001
Informal Consolidation
10 December 2002
Amended
Act 37 of 2002

01/01/2008
Formal Consolidation
01 January 2008
2008 RevEd
 
Compare versionsDiff

17/01/2008
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

16/02/2008
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

27/02/2008
Informal Consolidation
27 February 2008
Amended
Act 35 of 2007

01/04/2008
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

02/04/2008
Informal Consolidation
02 April 2008
Amended
Act 10 of 2006

01/10/2008
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

31/10/2008
Informal Consolidation
31 October 2008
Amended
Act 22 of 2011

16/12/2008
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

01/01/2009
Informal Consolidation
16 December 2008
Amended
Act 34 of 2008

09/01/2009
Informal Consolidation
09 January 2009
Amended
Act 22 of 2011

22/01/2009
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

01/04/2009
Informal Consolidation
01 April 2009
Amended
Act 22 of 2011

04/05/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/07/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/10/2009
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

29/12/2009
Informal Consolidation
31 December 2009
Amended
Act 27 of 2009

01/01/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

09/02/2010
Informal Consolidation
22 January 2010
Amended
Act 24 of 2009

22/02/2010
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

23/02/2010
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

01/03/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

01/04/2010
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

21/05/2010
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

07/07/2010
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

22/10/2010
Informal Consolidation
22 October 2010
Amended
Act 25 of 2010

22/11/2010
Informal Consolidation
22 November 2010
Amended
Act 29 of 2010

01/01/2011
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

19/02/2011
Informal Consolidation
19 February 2011
Amended
Act 22 of 2011

01/03/2011
Informal Consolidation
26 November 2010
Amended
Act 29 of 2010

01/04/2011
Informal Consolidation
01 April 2011
Amended
Act 22 of 2011

25/04/2011
Informal Consolidation
25 April 2011
Amended
Act 22 of 2011

01/05/2011
Informal Consolidation
08 April 2011
Amended
Act 13 of 2011

01/06/2011
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/04/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

20/12/2011
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

17/02/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

28/02/2013
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/09/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

23/12/2013
Informal Consolidation
20 December 2013
Amended
S 775/2013

01/06/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

28/02/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

01/09/2011
Informal Consolidation
01 September 2011
Amended
Act 22 of 2011

21/02/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

13/03/2013
Informal Consolidation
04 February 2013
Amended
Act 3 of 2013

01/01/2014
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

31/01/2013
Informal Consolidation
02 January 2013
Amended
Act 36 of 2012

01/04/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

01/01/2012
Informal Consolidation
20 December 2011
Amended
Act 22 of 2011

25/02/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

01/04/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

28/11/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

26/02/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

03/12/2012
Informal Consolidation
03 December 2012
Amended
S 595/2012

17/02/2013
Informal Consolidation
17 December 2012
Amended
Act 2 of 2013

18/12/2012
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

30/05/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

27/11/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

18/04/2013
Informal Consolidation
17 April 2013
Amended
Act 11 of 2013

01/03/2012
Informal Consolidation
18 December 2012
Amended
Act 29 of 2012

28/06/2013
Informal Consolidation
28 November 2013
Amended
Act 19 of 2013

31/03/2014
Formal Consolidation
31 March 2014
2014 RevEd
 
Compare versionsDiff

22/02/2014
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014

01/01/2015
Informal Consolidation
01 January 2015
Amended
Act 37 of 2014

01/06/2015
Informal Consolidation
01 June 2015
Amended
Act 37 of 2014

01/07/2015
Informal Consolidation
27 November 2014
Amended
Act 37 of 2014