The 2020 Taxation Laws Amendment Bill (2020 TLAB) and the 2020 Tax Administration Laws Amendment Bill (2020 TALAB) have been passed by the national assembly (NA) and sent to the national council of provinces (NCOP) for concurrence.
The bills were tabled in parliament on 28 October 2020 during the Medium Term Budget Policy Statement.
The 2020 Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2020 Rates Bill) has also been passed by the NA and sent to the NCOP for concurrence.
According to an earlier national treasury statement, the tax bills contain tax proposals made in the 2020 Budget on 26 February 2020.
Key tax proposals contained in the 2020 TLAB include the following:
• Proposed introduction of export taxes on scrap metals;
• Tax measures required as a result of the modernisation of the foreign exchange control system;
• Aligning the carbon fuel levy adjustment with the Carbon Tax Act;
• Allowing a carbon tax “pass through” for the regulated liquid fuels sector;
• Addressing an anomaly in the tax exemption of employer provided bursaries;
• Clarifying rollover relief for unbundling transactions; and
• Consequential amendments as a result of 2019 changes to section 72 of the VAT Act.
Key tax proposals contained in the 2020 TALAB include the following:
• Amendments enabling the proposed introduction of an export tax on scrap metals;
• Removal of the requirement to prove intent with regard to certain offences listed in the Fourth Schedule to the Income Tax Act, the Value-Added Tax Act and the Tax Administration Act;
• Refusal to authorise a refund where returns are outstanding under the Skills Development Levies Act and the Unemployment Insurance Contributions Act;
• Withholding of a refund pending a criminal investigation; and
• Estimated assessments where relevant material requested by SARS has not been supplied.
Key tax proposals contained in the 2020 Rates Bill include the following:
• Changes in rates and monetary thresholds to the personal income tax tables;
• Adjustment of transfer duty rates to support the property market; and
• Increases of the excise duties on alcohol and tobacco.
The select committee on finance will now process the bills.
The select committee has called for comment on the bills.
Submissions are invited until 23 November 2020.
Public hearings are scheduled for 24 November 2020.