National Treasury and SARS have published, for public comment, various tax amendment bills.
Together with the 2017 Draft Rates, Monetary Amounts and Amendment of Revenues Laws Bill published on 22 February 2017, these three draft Bills give effect to the tax proposals announced in the Budget Review. The two draft Bills released include most of the more complex and administrative tax proposals but exclude the proposals dealt with in the 2017 Draft Rates Bill, such as: changes to the personal income tax brackets, rates and excise duties and the introduction of the Health Promotion Levy (the proposed sugary beverage tax).
Some of the key tax proposals contained in the 2017 Draft bills are:
A higher fringe benefit exemption for bursaries to learners with disabilities
Removing the foreign employment income tax exemption in respect of South African residents
Addressing the circumvention of anti-avoidance rules dealing with share buy backs, dividend stripping and contributed tax capital
Extending the application of controlled foreign company rules to interposed foreign trusts and foreign foundations
Assisting micro businesses transitioning into the small business corporation system
Employees’ tax and reimbursement of travel expenses
Application of the cap on deductible retirement fund contributions
Taxation of interest payable in respect of normal tax by SARS
Phased implementation of Tax Administration Act, 2011, interest rules by tax type
These proposals will go through a public participation process and will thereafter be finalised in all probability by the mid-term budget speech in October 2017. We will keep you informed of the final legislated laws in due course. Should you require additional information at this stage please do not hesitate to contact us for professional advice.