A 2nd revised 2020 Draft Disaster Management Tax Relief Bill has been released.
The draft bill was first published at the beginning of April 2020 and a revised version was issued on 1 May 2020.
The draft bill provides the necessary legislative amendments required to implement the COVID-19 tax measures.
At the end of March, the finance minister, Tito Mboweni, announced tax measures designed to combat the COVID-19 pandemic.
The measures are over and above the tax proposals outlined in the 2020 Budget in February.
The tax adjustments are made due to the national state of disaster and the potential negative impacts of COVID-19 on the economy.
The draft bill seeks to:
• amend the Employment Tax Incentive Act, 2013, so as to amend certain provisions to provide for tax relief in respect of the COVID-19 pandemic;
• make new provision for the tax treatment of certain organisations for disaster relief in respect of the COVID-19 pandemic and of donations to such organisations;
• provide for a temporary exemption from liability to pay skills development levies under the Skills Development Levies Act, 1999; and
• provide for matters incidental thereto.
According to a national treasury statement, a revised Draft Notice on Expanding Access to Living Annuity Funds has also been released.
The revised draft bill and revised draft notice are “published to provide early feedback on issues raised through public comment on the revised COVID-19 Draft Tax Bills published on 1 May 2020 that are time critical for payroll and other aspects to be implemented in May 2020”.
Treasury also announced that the “3rd revised 2020 Draft Disaster Management Tax Relief Bill and 2020 Draft Disaster Management Tax Relief Administration Bill, as well as the Notice on Expanding Access to Living Annuity Funds, will be published by the end of May to take into account all public comments received on the revised COVID-19 Draft Tax Bills published on 1 May 2020”.
In a separate matter, treasury indicated that the deadline for submission of public comments on the 2020 tax proposals, “Tax Treatment of Excessive Debt Financing, Interest Deductions and Other Financial Payments” is further extended from 29 May to 30 September 2020.
In Government Gazette 43336, the South African Revenue Service published an amendment of Schedule 2 to the Customs and Excise Act.
The amendment inserts items 207.01/3907.6/01.05; 207.01/3907.6/02.05 and 207.01/3907.6/03.05 in order to implement anti-dumping duties on Poly(ethylene terephthalate) (PET) originating in or imported from The People’s Republic of China as outlined in ITAC Report 621.