Section 47: Sociétés

47. Sociétés (1) Subject to section 50L, no resident société shall be liable to income tax. (2) Subject to this Act, every associate of a resident société shall be liable to income tax on his share of income from that société. (3) The net income of an associate from a resident société shall be deemed to be the share to which he would have been entitled in the income of the société during an income year if the income had been wholly distributed among the associates. (4) For the purpose of calculating the net income of an associate specified in subsection (3), the associate shall be deemed to have— (a) derived that part of the gross income of the société; and (b) incurred that part of the allowable deductions of the société, which bear the same proportion to the gross income or allowable deductions of the société as his share in the income of the société calculated in accordance with subsection (3) bears to the income of the société. (5) Every associate of a société holding a Category 1 Global Business Licence under the Financial Services Act shall be liable to income tax in respect of his share of income in that société at the rate of 15 per cent. (6) Notwithstanding subsection (1), a société referred to in subsection (5) may, by notice in writing given simultaneously to the Director-General and the Commission established under the Financial Services Act, opt to be liable to income tax at the rate of 15 per cent. (7) A non-resident société shall— (a) be liable to income tax as if the société were a company; and (b) pay income tax on its chargeable income at the rate specified in the First Schedule. [S. 47 amended by Act 13 of 1996; Act 25 of 2000; s. 46 (4) (b) of Act 13 of 2001 w.e.f. 1 December 2001; s. 18 (q) of Act 15 of 2006 w.e.f. 1 July 2007 in respect of the year of assessment commencing on 1 July 2007 and in respect of every subsequent year of assessment; s. 17 (j) of Act 17 of 2007 w.e.f. 1 July 2008; s. 9 (e) of Act 27 of 2013 w.e.f. year of assessment commencing on 1 January 2015.]