Section 7 (2) of the south african income tax act
Section 7(2) of the South African Income Tax Act deals with the treatment of income derived from the rendering of personal services. It states that any income earned from the rendering of personal services by an individual, whether as an employee or in a personal capacity, is deemed to be income from a trade and is subject to tax.
This section applies to individuals who earn income from providing services such as consulting, freelancing, or any other form of personal service. The income generated from these services is treated as if it were earned from a business or trade, and the individual is required to pay tax on it accordingly.
Overall, Section 7(2) ensures that income derived from personal services is taxed in the same manner as other types of income, ensuring fairness and equity in the tax system.