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2017 Taxation Laws Amendment Bill Tabled

October 30, 2017

National Treasury

The Taxation Laws Amendment Bill (TLAB) and the Tax Administration Laws Amendment Bill (TALAB) have been tabled in parliament.

Both bills were published for comment in July 2017.

The main tax proposals contained in the TLAB are:

• A levy on bargaining councils to address non-compliance;
• 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;
• Strengthening anti-avoidance rules relating to mining environmental rehabilitation funds;
• Extending the application of controlled foreign company rules to interposed foreign trusts and foreign foundations;
• Changes in the tax treatment of banks due to IFRS9; and
• Tax amendments due to the SAM framework for long term insurers.

The main tax administration proposals outlined in the TALAB include:

• 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; and
• Transitional arrangements regarding processes before commencement of the new Customs Acts.

The Rates and Monetary Amounts and Amendment of Revenue Laws Bill was also tabled on 25 October 2017.

The bill aims to:

• Fix the rates of normal tax;
• Amend the Transfer Duty Act, 1949; so as to amend transfer duty monetary thresholds;
• Amend the Income Tax Act, 1962, so as to amend rates of tax and monetary amounts;
• Amend the Customs and Excise Act, 1964, so as to amend rates of duty in Schedule 1 to that Act;
• Insert a new part;
• Insert a new section;
• Insert new tariff items;
• Amend the Taxation Laws Amendment Act, 2016 so as to change an effective date;
• Amend the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2016 so as to make corrections;
• amend the Value-Added Tax Act, 1991, so as to amend a provision; and
• Provide for matters connected therewith.

The Division of Revenue Amendment Bill and the Adjustments Appropriation Bill were also tabled on Medium Term Budget Policy Statement day.

The bills will be processed by the standing committee on finance.