INCOME TAX - SPECIFIC INCLUSIONS & EXEMPTIONS

An amount received in respect of services rendered must be included in gross income unless it is capital in nature

• TRUE

• FALSE

A restraint of trade is included in gross income irrespective of the duration of the period of the restraint

• TRUE

• FALSE

Fringe benefits are included in gross income together with other forms of remuneration by paragraph (c) of the gross income definition

• TRUE

• FALSE

Dividend income is not included in gross income because it is a distribution of the after-tax profits of a company

• FALSE

• TRUE

A lease premium received by a landlord is included in gross income over the duration of the lease agreement

• TRUE

• FALSE

In general, both local and foreign dividends are exempt from normal tax

• TRUE

• FALSE

Only South African interest income received by natural persons may be exempt from normal tax

• FALSE

• TRUE

The interest income of all non-residents is exempted from normal tax by section 10(1)(h)

• TRUE

• FALSE

A South African resident who receives a pension form a foreign government pension fund will be taxed in full on the amount, because they are taxed on their worldwide income

• TRUE

• FALSE

Royalties received form a South African source by a non-resident who has never been to South Africa are not subject to any taxes in South Africa

• FALSE

• TRUE