2022 Draft Rates, Revenue & Tax Bills

The National Treasury and the South African Revenue Service (SARS) has published, for public comment, the 2022 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2022 Draft Rates Bill) the 2022 Draft Revenue Laws Amendment Bill, the 2022 Draft Taxation Laws Amendment Bill (2022 Draft TLAB) and the 2022 Draft Tax Administration Laws Amendment Bill (2022 Draft TALAB).

Find here: Media Statement
                  Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill 29 July 2022
                  DRAFT TLAB -29 July 2022
                  Draft Explanatory Memoradum on the 2022 Draft RLAB - 29 July 2022
                  Draft Explanatory Memoradum on the 2022 Draft TLAB- 29 July 2022
                  Draft Memo on objects of Draft Tax Administraion Laws Amendment Bill-29 July 2022
                  Draft Tax Administration Laws Amendment Bill 2022- 29 July 2022
                  Draft Revenue Laws Amendment Bill -Two Pot System-29 July 2022

Comments can be emailed to the National Treasury’s tax policy depository at [email protected] and SARS at [email protected] by no later than Monday, 29 August 2022.

The 2022 draft Rates Bill was first published on Budget Day (25 February 2022) and gives effect to the tax proposals announced in Chapter 4 of the 2022 Budget dealing with changes to the rates and monetary thresholds to the personal income tax tables and increases of the excise duties on alcohol and tobacco. It has been revised to include changes tabled by the Minister in Parliament on 31 March 2022 and 31 May 2022 regarding temporary relief on the fuel levy as well as the postponement of the effective date of an inflationary increase in the health promotion levy of 4,5 per cent to 2.31 cents per gram of sugary beverages with more than 4 grams of sugar per 100 ml from 1 April 2022 to 1 April 2023.

The 2022 draft Revenue Laws Amendment Bill contains proposed amendments dealing with the “two pot” retirement system. The proposed amendments give effect to the previous announcements made by the Minister in the February 2021 Budget Speech and November 2021 Medium Term Budget Policy Statement. These amendments also follow a discussion document published by National Treasury for public comment on 15 December 2021, titled “Encouraging South African households to save more for retirement”.

The 2022 draft TLAB and 2022 draft TALAB contain the remainder of the tax announcements made in Chapter 4 and Annexure C of the 2022 Budget Review, which are legislatively more complicated and require greater consultation with the public. Key proposals included in the 2022 draft TLAB are the following;

 Progressive increase in the carbon tax rate for 2023 to 2030;

 Vaping: Taxation of electronic nicotine and non-nicotine delivery systems;

 Extension of the Research and Development tax incentive sunset date;

 Impact of IFRS17 insurance contracts on the taxation of insurers;

 Reviewing the debtor’s allowance provisions to limit the impact on lay by arrangements.

Key proposals included in the 2022 draft TALAB are the following:

 Advance rulings under the Customs and Excise Act; 2

 Imposition of understatement penalty for employment tax incentives improperly claimed;  Addressing tax compliance status system abuse.