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2022 Draft Tax Bills Published for Comment

August 1, 2022

National Treasury

National treasury has published the 2022 Draft Tax Bills for comment.

In a statement, treasury points out that the 2022 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2022 Draft Rates Bill), the 2022 Draft Revenue Laws Amendment Bill, the 2022 Draft Taxation Laws Amendment Bill (2022 Draft TLAB) and the 2022 Draft Tax Administration Laws Amendment Bill (2022 Draft TALAB) collectively give effect to the tax announcements made by the finance minister in the February 2022 Budget.

According to treasury, the 2022 Draft Rates Bill was first published on Budget Day and gives effect to the tax proposals announced in Chapter 4 of the 2022 Budget dealing with changes to the rates and monetary thresholds to the personal income tax tables and increases of the excise duties on alcohol and tobacco.

“It has been revised to include changes tabled by the Minister in Parliament on 31 March 2022 and 31 May 2022 regarding temporary relief on the fuel levy as well as the postponement of the effective date of an inflationary increase in the health promotion levy of 4,5 per cent to 2.31 cents per gram of sugary beverages with more than 4 grams of sugar per 100 ml from 1 April 2022 to 1 April 2023.”

The 2022 Draft Revenue Laws Amendment Bill contains proposed amendments dealing with the “two pot” retirement system.

The 2022 Draft TLAB and 2022 Draft TALAB contain the remainder of the tax announcements made in Chapter 4 and Annexure C of the 2022 Budget Review.

Key proposals in the 2022 Draft TLAB include:

  • Progressive increase in the carbon tax rate for 2023 to 2030;
  • Vaping: Taxation of electronic nicotine and non-nicotine delivery systems;
  • Extension of the Research and Development tax incentive sunset date;
  • Impact of IFRS17 insurance contracts on the taxation of insurers; and
  • Reviewing the debtor’s allowance provisions to limit the impact on lay by arrangements.

Key proposals in the 2022 Draft TALAB include:

  • Advance rulings under the Customs and Excise Act;
  • Imposition of understatement penalty for employment tax incentives improperly claimed; and
  • Addressing tax compliance status system abuse.

Treasury and the South African Revenue Service invite comment on the draft bills until 29 August 2022.