Absolute Exemptions

Environmental rehabilitation – s10(1)(cA)

Environmental rehabilitation – s10(1)(cA) Sole objective is to rehabilitate environment – exempt
Housing association S10(1)(cC) Section 21 companies

·         Sole objection build/buy dwellings for occupation by employee of employers who is a member of housing association

·         Minimum profit

 

Housing home loan finance bodies – Sec 10(1)(cJ) Certain housing facilities are exempt
Housing for low income communities S10(1)(cI) Section 21 company – sole objective is to provide housing for low income communities
Housing retirement complexes Sec 10(1)(cF) Sole objective to provide residential accommodation for persons over 60 years of age or hat are retired due to ill health
Political parties S 10(1)(cE) Registered under S36 of electoral act is exempt
Government and local authorities Exempt
Religious, educational, charitable institutes Now exempt in terms of S10(1)(cN) or Sec 30(3)
Ships and aircrafts foreign owners and charters S10(1)(cG) Person – non resident – owner of ship/aircraft – exempt

Similar exemption by other countries for SA ship owners in that country

Small business development corporation Subsidies from state exempt
Specific research and ancillary entities s 10(1)(cA) or (cB) Exempt unless all shares are held by qualifying shareholder. Sole objective

·         Conduct scientific, industrial or technical research, provide medical, blood,dental, hospital or nursing services. Nature conservation or animal protection

·         Not permitted to distribute any profits

·         Use fund only for investment or sole objective

Sporting association S10(1)(cP) Now exempt in terms of Section 10(1)(cN) and 30(3)
Public Benefit Organisations Now exempt in terms of Section 10(1)(cN) and 30(3)

·         Section 21 company

·         Sole objective – carry on benefit activities in non profit manner

·         85% of activities for benefit of public

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