Section 50L: CSR Fund

50L. CSR Fund (1) Every company shall, in every year, set up a CSR Fund equivalent to 2 per cent of its chargeable income of the preceding year. (2) (a) Subject to subsection (9), an amount equal to the percentage of the CSR Fund, as specified in the following table, shall be remitted to the Director-General— Percentage to be remitted to the Director-General CSR Fund set up on or after 1 January 2017 up to 31 Decem- At least 50% ber 2017 CSR Fund set up on or after 1 At least 75% January 2018 (b) The remainder shall be used by the company— (i) in respect of a CSR Fund set up before 1 January 2019, to implement a CSR Programme in accordance with its own CSR Framework; (ii) in respect of a CSR Fund set up on or after 1 January 2019, to implement a CSR Programme or finance a nongovernmental organisation implementing a CSR Programme in the priority areas of intervention as specified in Part A of the Tenth Schedule. (3) No CSR money shall be spent by a company in respect of the activities specified in Part B of the Tenth Schedule. (4) Subject to subsection (9), the amount referred to in subsection (2) (a) shall be remitted to the Director-General as follows— (a) in the case of a company required to submit an APS Statement under Sub-part AA— (i) for the first three quarters, 25 per cent for each of the quarters together with the APS Statement required to be submitted under section 50B; and (ii) for the last quarter, 25 per cent at the time the company submits its annual return under section 116; I5 – 43 [Issue 9] Income Tax Act (b) in the case of a company which is not required to submit an APS Statement under section 50B (4), together with its annual return under section 116 or 119. (6) Any amount unspent under subsection (2) (b) shall be remitted to the Director-General, together with the company's annual return under section 116 or 119. (7) The Authority shall, as soon as is practicable, remit any sum collected under subsections (2) (a) and (6) to the Accountant-General for onward remittance to the National CSR Foundation. (8) This Sub-part shall apply to a resident société, other than a resident société holding a Global Business Licence under the Financial Services Act, as it applies to a company, and its net income shall be deemed to be its chargeable income and any distribution of its net income shall, for the purpose of this Sub- part, be deemed to be dividends. (9) (a) The amount to be remitted to the Director- General shall be reduced by such amount as the company intends to spend in respect of an approved CSR programme which fits within the priority areas of intervention as specified in Part A of the Tenth Schedule. (b) The amount to be remitted to the Director- General shall only be reduced where the company receives the prior written approval of the National CSR Foundation. [S. 50L inserted by s. 21 (d) of Act 14 of 2009 w.e.f. 1 July 2009; amended by s. 8 (o) of Act 37 of 2011 w.e.f. the income year commencing on 1 January 2012 and in respect of every subsequent income year; s. 12 (h) of Act 26 of 2012 w.e.f. 22 December 2012; s. 24 (j) of Act 9 of 2015 w.e.f. 1 July 2015 in respect of the year of assessment commencing on 1 July 2015 and in respect of every subsequent year of assessment; s. 9 (i) of Act 26 of 2013 w.e.f. year of assessment commencing on 1 January 20105; repealed and replaced by s. 27 (h) of Act 18 of 2016 w.e.f. 7 September 2016.]