Taxation Laws Amendment Draft Bill & Tax Administration Laws Amendment Draft Bill

National Treasury and the South African Revenue Service (SARS) invite public comment on the 2017 Draft Taxation Laws Amendment Bill (TLAB) and the 2017 Draft Tax Administration Laws Amendment Bill (TALAB).

Both draft Bills give effect to the tax proposals announced on Budget Day (22 February 2017), as published in the Budget Review.

The main tax proposals contained in the 2017 Draft TLAB are:

·A levy on bargaining councils to address non-compliance

·A higher fringe benefit exemption for bursaries to learners with disabilities

·Removing the foreign employment income tax exemption in respect of South African residents

·Addressing the circumvention of anti-avoidance rules dealing with share buy backs, dividend stripping and contributed tax capital

·Strengthening anti-avoidance rules relating to mining environmental rehabilitation funds

·Extending the application of controlled foreign company rules to interposed foreign trusts and foreign foundations

·Changes in the tax treatment of banks due to IFRS9

·Tax amendments due to the SAM framework for long term insurers

The main tax administration proposals contained in the 2017 Draft TALAB relate to:

·Assisting micro businesses transitioning into the small business corporation system

·Employees’ tax and reimbursement of travel expenses

·Application of the cap on deductible retirement fund contributions

·Taxation of interest payable in respect of normal tax by SARS

·Phased implementation of Tax Administration Act, 2011, interest rules by tax type

·Transitional arrangements regarding processes before commencement of the new Customs Acts

The media statement and the draft explanatory memorandum containing a comprehensive description of the draft amendments can be found here

Comments can be sent to Nombasa Langeni at [email protected] and Adele Collins at [email protected] by close of business on 18 August 2017