South Africa: SARS releases draft taxation amendment bill for public comment

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The National Treasury and the South African Revenue Service (SARS) published on 19 July 2017 for public comment the 2017 Draft Taxation Laws Amendment Bill (TLAB) and the 2017 Draft Tax Administration Laws Amendment Bill (TALAB). Together with the 2017 Draft Rates and Monetary Amounts and Amendment of Revenues Laws Bill (Rates Bill) published on 22 February 2017, these three draft Bills give effect to the tax proposals announced on Budget Day (22 February 2017), as published in the budget review.

The two draft Bills include most of the more complex and administrative tax proposals but exclude the proposals dealt with in the 2017 Draft Rates Bill, such as changes to the personal income tax brackets and rates and excise duties, and the introduction of the Health Promotion Levy.

Significant proposals contained in the 2017 TLAB include the removal of the foreign employment income tax exemption in respect of South African residents; measures to address the circumvention of anti-avoidance rules dealing with share buy backs, dividend stripping and contributed tax capital; measures to strengthen anti-avoidance rules relating to mining environmental rehabilitation funds; and the extension of controlled foreign company rules to interposed foreign trusts and foreign foundations.

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