2023 Budget Draft Tax Bills and Draft Regulations

The National Treasury and the South African Revenue Service (SARS) invites public comment on the 2023 draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2023 draft Rates Bill), the 2023 draft Taxation Laws Amendment Bill (2023 draft TLAB), the 2023 draft Tax Administration Laws Amendment Bill (2023 draft TALAB), draft Regulations in terms of paragraph (d) of the definition of “Research and Development” in section 11D(1) of the Income Tax Act, 1962, on additional criteria for multisource pharmaceutical products, draft Regulations in terms of paragraph (e) of the definition of “Research and Development” in section 11D(1) of the Income Tax Act, 1962, on criteria for clinical trials in respect of deduction for research and development; draft Regulations on domestic reverse charge relating to valuable metal in terms of section 74(2) of the Value-Added Tax Act, 1991 and draft Carbon Offset Regulations.

Comments can be emailed to the National Treasury at [email protected] and SARS at [email protected] by no later than Thursday, 31 August 2023.

Find here: Media Statement: Publication of the 2023 Budget Draft Tax Bills and Draft Regulations
                  2023 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (July 2023)
                  Tax Administration Laws Amendment Bill
                  Taxation Laws Amendment Bill
                  Draft Explanatory Memorandum on the Draft Taxation Laws Amendment Bill 2023 - 31 July 2023
                  Draft Memorandum on the Objects of the 2023 draft TALAB for public comment and introduction in Parliament
                  Draft amendments to Regulations in terms of paragraph (d) of the definition of “Research and Development” in section 11D(1) of the Income Tax Act, 1962, on additional criteria for multisource pharmaceutical products
                  Draft amendments to Regulations in terms of paragraph (e) of the definition of “Research and Development” in section 11D(1) of the Income Tax Act, 1962, on criteria for clinical trials in respect of deduction for research and development
                  Draft amendments to Regulations on domestic reverse charge relating to valuable metal in terms of 74(2) of the Value-Added Tax Act, 1991 (the VAT Act)
                 Draft Explanatory Memorandum on domestic reverse charge relating to valuable metal in terms of 74(2) of the VAT Act
                 Draft amendments on Carbon Offsets Regulations

These draft tax bills and draft Regulations give effect to the 2023 Budget tax proposals, which were outlined in Chapter 4 and Annexure C of the 2023 Budget Review.

The public consultation process for tax proposals is a critical element of the tax legislative process and differs from the consultative processes for other money bills.

After receipt of written comments, National Treasury and SARS normally engage with stakeholders through public workshops to discuss the written comments on the draft tax bills and draft regulations.

With regard to the 2023 draft tax bills, the Standing Committee on Finance (SCoF) and the Select Committee on Finance (SeCoF) in Parliament are expected to make a similar call for public comment and convene public hearings on the 2023 Rates Bill, 2023 draft TLAB and 2023 draft TALAB before their formal introduction in Parliament. Thereafter, a response document by the National Treasury and SARS will be presented on the comments received to the parliamentary committee meetings, after which the draft bills will then be revised, taking into account public comments and recommendations made during committee hearings, before they are introduced formally in Parliament for its consideration. For legal reasons, the draft tax amendments continue to be split into two types of bills, namely a money bill (section 77 of the Constitution) dealing with money bill issues and an ordinary bill (section 75 of the Constitution) dealing with issues relating to tax administration.

With regard to the draft regulations, National Treasury and SARS will also engage with stakeholders through public workshops to discuss their written comments. The Notices on Regulations in terms of paragraph (d) of the definition of “Research and Development” in section 11D(1) of the Income Tax Act, 1962, on additional criteria for multisource pharmaceutical products, Regulations in terms of paragraph (e) of the definition of “Research and Development” in section 11D(1) of the Income Tax Act, 1962, on criteria for clinical trials in respect of deduction for research and development; Regulations on domestic reverse charge relating to valuable metal in terms of section 74(2) of the Value-Added Tax Act, 1991 and Carbon Offset Regulations will then be published in the Government Gazette after taking into account public comments received.