ATC241203: Report of the Select Committee on Finance on the Global Minimum Tax Administration Bill [B21 - 2024] (National Assembly- section 75), dated 03 December 2024
NCOP Finance
Report of the Select Committee on Finance on the Global Minimum Tax Administration Bill [B21 - 2024] (National Assembly- section 75), dated 03 December 2024
1.Introduction
The Global Minimum Tax Administration (GMTA) Bill was formally tabled on 30 October 2024, together with the 2024 Medium Term Budget Policy Statement (MTBPS) and other tax bills.
The GMTA Bill proposes to provide for the administration of the Global Minimum Tax (GMT) Act; and to provide for matters connected therewith. The Bill specifically proposes to introduce the administrative provisions of the Global Anti-Base Erosion (GloBE) Model Rules in South Africa for purposes of the administration of the GMT Bill. In terms of the provisions of the Tax Administration Act (TAA), the Commissioner of the South African Revenue Service (SARS) is responsible for the administration of this Bill and the GMT Bill.
The GMTA Bill contains the clauses on (1), definitions, (2) obligation to submit GloBE Information Return (GIR), which is a standardised template form intended to provide SARS with the information it needs to evaluate the correctness of a Domestic Constituent Entity’s tax liability under the GloBE Model Rules, (3) due date for submission of the GIR, which is up to 18 months after the commencement of the fiscal year, (4) exception for returns provided under automatic exchange of information agreement, (5) due date for payment; refunds and interest payable by SARS, (6) penalties, if the GIR is not submitted on time or if there is any false or incomplete information, and (7) record keeping and extension of the period; administration of the Act; regulations; and short title and commencement.
2.Processing of the Bill
On 20 November 2024, the Committee received a briefing from the National Treasury (NT) and the SARS. The Committee received no submissions on the GMTA Bill. The Committee held a meeting on 29 November 2024 and 03 December 2024 to consider the Bill clause by clause and adopt the report, respectively.
3.Committee’s observations and recommendations
3.1As in the GMT Bill report, the Committee reiterates the recommendation made in the 2024 fiscal framework and revenue proposals report, when the 6th term Committee welcomed the proposal to implement the GMT and urged SARS to develop a clear and achievable framework to address illicit financial flows and Base Erosion and Profit Shifting (BEPS) to grow the revenue base, and report progress made to it.
The Select Committee on Finance, having considered and examined the Global Minimum Tax Administration Bill [B21 - 2024] (National Assembly – section 75), referred to it, and classified by the JTM as a section 75 Bill, accepts the Bill.
Report to be considered.