§ 43I — Concessionary rate of tax for global trading company and qualifying company

43I.—(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 5%, 10% or 15% is to be levied and paid for each year of assessment upon —(a)

such income as the Minister may specify of an approved global trading company —(i)

that is derived by it from such prescribed qualifying transactions in such prescribed commodities as the Minister or an authorised body may specify to the company;[Act 41 of 2020 wef 12/04/2024]

(ii)

that is derived by it in the basis period for the year of assessment 2012 or a subsequent year of assessment, from prescribed qualifying transactions in any derivative instrument; or

(iii)

that is derived by it on or after 19 February 2020 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or an authorised body may specify to the company; and[Act 41 of 2020 wef 12/04/2024]

(b)

such income as the Minister may specify of an approved qualifying company that is derived on or after 21 May 2010 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or an authorised body may specify to the company,

and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).

[34/2016; 41/2020]

[Act 35 of 2024 wef 01/01/2024]

[Act 41 of 2020 wef 12/04/2024]

(1AA) Subject to the regulations under subsection (1), the income of an approved global trading company or approved qualifying company mentioned in that subsection —(a)

is chargeable with tax at the rate of 5% if the company has been approved for that rate;[Act 35 of 2024 wef 01/01/2024]

(b)

is chargeable with tax at the rate of 10% if the company has been approved for that rate;[Act 35 of 2024 wef 01/01/2024]

(c)

is chargeable with tax at the rate of 15% if the company (being a global trading company approved on or after 17 February 2024) has been approved for that rate; or[Act 35 of 2024 wef 01/01/2024]

(d)

in the case of an approved global trading company to which subsection (1AC) applies, is chargeable with tax at the substituted rate mentioned in that subsection but only for income derived from (and including) the date specified by the Minister or an authorised body to the company for the application of that rate, which may be a date earlier than the notice mentioned in that subsection but not earlier than 1 January 2024.[32/2019]

[Act 35 of 2024 wef 01/01/2024]

(1AB) For the purposes of this section, the Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve —(a)

a global trading company as an approved global trading company; or

(b)

a qualifying company as an approved qualifying company.[32/2019]

[Act 41 of 2020 wef 12/04/2024]

(1AC) The Minister or an authorised body may, on or after 17 February 2024, on the Minister’s or authorised body’s own initiative or on the application of the approved global trading company, by notice to the company substitute the rate of tax applicable to the company under subsection (1AA)(a), (b) or (c) with 5%, 10% or 15%, as the case may be.[Act 35 of 2024 wef 01/01/2024]

(1A) No approval may be granted under this section to a global trading company after 31 December 2026.[41/2020]

(1B) No approval may be granted under this section to a qualifying company after 31 March 2021, and any approval granted to a qualifying company must be for a period that commences on or before that date.[41/2020]

(2) [Deleted by Act 32 of 2019]

(3) In this section —“global trading company” means a company that carries on the business of international trading of commodities or commodities derivatives, or of brokering international trades in commodities, or both;

“qualifying company” means —(a)

an approved company that carries on the business of international trading of commodities or commodities derivatives; or

(b)

a wholly‑owned subsidiary of another company, where the other company carries on the business of international trading of commodities or commodities derivatives,

that carries on any qualifying structured commodity financing activities, treasury activities, or advisory services in relation to mergers and acquisitions, prescribed under subsection (1).

(4) A reference in subsections (1AA)(d) and (1AC) to an authorised body is, in a case where the notice to substitute the rate of tax applicable to an approved global trading company is given to the company during the period from 17 February 2024 to 11 April 2024 (both dates inclusive), a reference to a person appointed by the Minister.[Act 25 of 2025 wef 01/01/2024]

[43P

[34/2016; 39/2017; 32/2019]

—(1) Despite section 43, the Minister may by regulations provide that tax at the rate of 5%, 10% or 15% is to be levied and paid for each year of assessment upon —(a)

such income as the Minister may specify of an approved global trading company —(i)

that is derived by it from such prescribed qualifying transactions in such prescribed commodities as the Minister or an authorised body may specify to the company;[Act 41 of 2020 wef 12/04/2024]

(ii)

that is derived by it in the basis period for the year of assessment 2012 or a subsequent year of assessment, from prescribed qualifying transactions in any derivative instrument; or

(iii)

that is derived by it on or after 19 February 2020 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or an authorised body may specify to the company; and[Act 41 of 2020 wef 12/04/2024]

(b)

such income as the Minister may specify of an approved qualifying company that is derived on or after 21 May 2010 from the carrying on of such prescribed qualifying structured commodity financing activities, prescribed treasury activities or prescribed advisory services in relation to mergers and acquisitions, as the Minister or an authorised body may specify to the company,

and those regulations may provide for the deduction of losses otherwise than in accordance with section 37(3).

[34/2016; 41/2020]

[Act 35 of 2024 wef 01/01/2024]

[Act 41 of 2020 wef 12/04/2024]

(1AA) Subject to the regulations under subsection (1), the income of an approved global trading company or approved qualifying company mentioned in that subsection —(a)

is chargeable with tax at the rate of 5% if the company has been approved for that rate;[Act 35 of 2024 wef 01/01/2024]

(b)

is chargeable with tax at the rate of 10% if the company has been approved for that rate;[Act 35 of 2024 wef 01/01/2024]

(c)

is chargeable with tax at the rate of 15% if the company (being a global trading company approved on or after 17 February 2024) has been approved for that rate; or[Act 35 of 2024 wef 01/01/2024]

(d)

in the case of an approved global trading company to which subsection (1AC) applies, is chargeable with tax at the substituted rate mentioned in that subsection but only for income derived from (and including) the date specified by the Minister or an authorised body to the company for the application of that rate, which may be a date earlier than the notice mentioned in that subsection but not earlier than 1 January 2024.[32/2019]

[Act 35 of 2024 wef 01/01/2024]

(1AB) For the purposes of this section, the Minister or an authorised body may, subject to such conditions as the Minister or authorised body may impose, approve —(a)

a global trading company as an approved global trading company; or

(b)

a qualifying company as an approved qualifying company.[32/2019]

[Act 41 of 2020 wef 12/04/2024]

(1AC) The Minister or an authorised body may, on or after 17 February 2024, on the Minister’s or authorised body’s own initiative or on the application of the approved global trading company, by notice to the company substitute the rate of tax applicable to the company under subsection (1AA)(a), (b) or (c) with 5%, 10% or 15%, as the case may be.[Act 35 of 2024 wef 01/01/2024]

(1A) No approval may be granted under this section to a global trading company after 31 December 2026.[41/2020]

(1B) No approval may be granted under this section to a qualifying company after 31 March 2021, and any approval granted to a qualifying company must be for a period that commences on or before that date.[41/2020]

(2) [Deleted by Act 32 of 2019]

(3) In this section —“global trading company” means a company that carries on the business of international trading of commodities or commodities derivatives, or of brokering international trades in commodities, or both;

“qualifying company” means —(a)

an approved company that carries on the business of international trading of commodities or commodities derivatives; or

(b)

a wholly‑owned subsidiary of another company, where the other company carries on the business of international trading of commodities or commodities derivatives,

that carries on any qualifying structured commodity financing activities, treasury activities, or advisory services in relation to mergers and acquisitions, prescribed under subsection (1).

(4) A reference in subsections (1AA)(d) and (1AC) to an authorised body is, in a case where the notice to substitute the rate of tax applicable to an approved global trading company is given to the company during the period from 17 February 2024 to 11 April 2024 (both dates inclusive), a reference to a person appointed by the Minister.[Act 25 of 2025 wef 01/01/2024]

[43P

[34/2016; 39/2017; 32/2019]