Draft Tax & Rates Bills

The National Treasury has published the 2019 Draft Tax Administration Laws Amendment Bill (TALAB), the 2019 Draft Taxation Laws Amendment Bill (TLAB) and the 2019 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Draft Rates Bill) for comment.

Comments must be submitted to 2019AnnexCProp@treasury.gov.za and Adele Collins at acollins@sars.gov.za by close of business on 23 August 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

Find Media Statement here

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 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 3

 Reviewing section 72 of the VAT Act

The 2019 Draft TALAB gives effect to the following key tax proposals:

 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