Draft Amendment Bills: Taxation Laws, Tax Administration Laws, Rates and Monetary Amounts & Income Tax

The Standing and Select Committees on Finance invites stakeholders and interested parties to submit written submissions on the 2019 Draft Income Tax Amendment Bill, 2019 Draft Tax Administration Laws Amendment Bill (TALAB),  2019 Draft Taxation Laws Amendment Bill (TLAB) and the 2019 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Draft Rates Bill).

Comments must be submitted to Mr Arico Kotze at [email protected] or Mr Allen Wicomb at [email protected] by no later than 12:00 on Friday, 6 September 2019

Enquries can be directed to both Committee Secretaries at [email protected] tel. 021 403 3662 and [email protected] tel. 021 403 3759

Public hearings will be conducted at Parliament on Tuesday, 10 September 2019.

You can access the Draft Explanatory Memorandum on the TLAB here

You can access the Draft Memorandum on the Objects of the TALAB here

You can access the Draft Memorandum on the Income Tax Amendment Bill here

The 2019 Draft TLAB gives effect to the following key tax proposals announced in the 2019 Budget Review: 

• Aligning the effective date of tax neutral transfers between retirement funds with the effective date of annuitisation for provident funds
• Adjusting the withholding tax treatment of surviving spouses’ pensions to limit tax debts on assessment
• Addressing abusive arrangements aimed at avoiding the anti-dividend stripping provisions
• Clarifying the interaction between corporate reorganisation rules and other provisions of the Income Tax Act
• Refining the tax treatment of long-term insurers
• Refining investment criteria and anti-avoidance measures for the Special Economic Zone regime
• Limiting the allowable deduction for investors investing in a venture capital company
• Reviewing the controlled foreign company comparable tax exemption and addressing the circumvention of the anti-diversionary rules
• Reviewing section 72 of the VAT Act

The 2019 Draft TALAB gives effect to the following key tax proposals announced in the 2019 Budget Review: 

• Removal of requirement to submit a declaration to a regulated intermediary in respect of tax free investments
• Authorisation for the Commissioner to prescribe rules relating to the making of advance foreign currency payments
• Alignment of time limitations on requesting refunds
• Model mandatory disclosure rules and non-compliance penalties
• Tax compliance certificates

The 2019 Draft Rates Bill gives effect to the following key tax proposals announced in the 2019 Budget Review: 

• Changes in rates and monetary thresholds to the personal income tax tables
• Adjustments to the eligible income bands that qualify for the employment tax incentive
• Increases of the excise duties on alcohol and tobacco

The 2019 Draft Income Tax Amendment Bill gives effect to the following environmental tax incentive proposals announced in the 2019 Budget Review: 

• Repeal of the exemption for certified emissions reductions
• Extension of the energy efficiency savings incentives

Issued by Hon. J Maswanganyi, MP, Chairperson: Standing Committee on Finance (National Assembly) and Hon. Y Carrim, MP, Chairperson: Select Committee on Finance (National Council of Provinces)