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2021 Tax Bills Tabled

November 15, 2021

Parliament

The 2021 Taxation Laws Amendment Bill (TLAB) has been tabled in parliament.

National treasury published the draft bill for comment at the end of July 2021.

Parliament sought comment on the proposed legislation in August 2021.

Key tax proposals contained in the 2021 TLAB include the following:

• Strengthening the rules dealing with limitation of interest deductions in respect of debt owed to persons not subject to tax;
• Restricting the set-off of the balance of assessed losses in determining taxable income;
• Refining the timeframes of compliance requirements of the industrial policy projects tax incentive;
• Curbing the abuse of the Employment Tax Incentive;
• Applying tax on retirement fund interest when an individual ceases to be a tax resident;
• Strengthening anti-avoidance rules in respect of loans between trusts;
• Refinements to the corporate reorganisation rules; and
• Clarifying the scope and definition of carbon sequestration.

The 2021 Tax Administration Laws Amendment Bill (TALAB) and the 2021 Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Rates Bill) were also tabled yesterday during the Medium Term Budget Policy Statement.

Key tax proposals contained in the 2021 TALAB include the following:

• Administrative non-compliance penalties based on estimates for non-submission of six-monthly employees’ tax returns;
• Removal of double-penalty for the same incidence of non-compliance relating to employees’ tax;
• Expanding the purposes for which air cargo may be removed to degrouping depots;
• Amendments related to changes in the accreditation system; and
• Increasing the caps for refunds and underpayments of duties.

Key tax proposals contained in the 2021 Rates Bill include the following:

• Changes in rates and monetary thresholds to the personal income tax tables; and
• Increases of the excise duties on alcohol and tobacco.

The 2021 Division of Revenue Amendment Bill and the 2021 Adjustments Appropriation Bill were also tabled.

The Division of Revenue Amendment Bill aims to amend the Division of Revenue Act, 2021 in accordance with the Money Bills and Related Matters Act; and to provide for matters connected therewith.

The 2021 Adjustments Appropriation Bill seeks to effect adjustments to the appropriation of money from the National Revenue Fund for the requirements of the State in respect of the 2021/22 financial year; and to provide for matters incidental thereto.