South Africa has opened a public consultation on the 2026 draft Taxation Laws Amendment Bill (TLAB) and Tax Administration Laws Amendment Bill (TALAB), proposing changes to retirement annuities, donations tax, Special Economic Zones, VAT, carbon tax refunds, customs procedures and tax administration. Stakeholders have until 28 August 2026 to submit comments on the draft legislation implementing measures announced in the 2026 Budget.
South Africa’s National Treasury and the South African Revenue Service (SARS) have launched a public consultation on the 2026 draft Taxation Laws Amendment Bill (2026 draft TLAB) and the 2026 draft Tax Administration Laws Amendment Bill (2026 draft TALAB), inviting written comments until the close of business on 28 August 2026.
Published on 30 July 2026, the draft legislation gives effect to tax proposals announced in the 2026 Budget presented on 25 February 2026, including measures set out in Chapter 4 and Annexure C of the 2026 Budget Review, together with a number of technical amendments.
Draft TLAB implements Budget tax proposals
The 2026 draft TLAB contains the legislative amendments required to implement the tax announcements made in Chapter 4 and Annexure C of the 2026 Budget Review, as well as technical corrections.
One proposal would determine the application of the prescribed de minimis limit for multiple living annuities on a cumulative basis where an annuitant holds multiple living annuities with the same insurer or fund. The measure is intended to ensure consistent application of the rule while supporting the broader policy objective of protecting retirement income.
The draft bill also proposes limiting the inter-spousal donations tax exemption so that it applies only to donations made to a spouse who is a South African tax resident. According to the proposal, the change is intended to prevent spouses from deliberately staggering their cessation of tax residence to avoid paying donations tax and capital gains tax.
For Special Economic Zones (SEZs), the draft legislation proposes replacing the existing anti-profit shifting rule with the arm’s length principle for domestic transactions between SEZ companies qualifying for the 15 per cent corporate income tax rate and related companies located outside the SEZ.
The bill also proposes amending the VAT Act to extend the claw-back mechanism for leasehold improvements to lessors that are not registered vendors. The proposal would introduce a specific declaration process to address situations where a landlord is not registered for VAT.
In addition, the draft TLAB proposes changes to refunds for carbon budget compliance by removing the current reference to the immediately preceding tax period. Under the proposal, refunds for the first two tax periods could be claimed in the third year, while refunds relating to the remaining tax periods, covering years three to five, could be claimed in the sixth year, allowing for technical adjustments relating to the initial two tax periods.
Draft TALAB focuses on tax administration
The 2026 draft TALAB introduces legislative amendments covering tax administration measures announced in Annexure C of the 2026 Budget Review, together with technical corrections.
Among the proposals is an enabling provision for Admission Temporaire/Temporary Admission carnets (ATA Carnets). The ATA Carnet system, established under the ATA and Istanbul Conventions, allows the temporary admission of certain goods without payment of duties or taxes. The proposal would enable South Africa to implement new electronic carnet requirements introduced under the electronic ATA Carnet Project launched by the World Customs Organisation and the International Chamber of Commerce, replacing the historical paper-based system.
The draft legislation also proposes expanding documentary requirements for second-hand goods vendors to align with those prescribed under the Second-Hand Goods Act and its regulations in an effort to reduce fraudulent notional input tax claims.
Another proposal would expressly permit banks to undertake pre- or post-deposit screening of refunds. Under the current system, banks are required to report suspicious tax refunds to SARS and hold the refunds for up to two business days while investigations are conducted. The amendment is intended to provide explicit legal authority for the screening process and facilitate smoother processing of refunds.
The bill also proposes allowing applicants seeking relief under the voluntary disclosure programme to simultaneously apply for the separate remission of interest relating to defaults disclosed in their voluntary disclosure application.
Gold proposal excluded from draft legislation
The National Treasury said the proposal relating to the “Supply of gold to banks”, announced in the 2026 Budget Review, has not been included in the 2026 draft TLAB because it requires further consultation and consideration.
The 2026 draft tax bills and accompanying draft explanatory memoranda, which provide a detailed explanation of the proposed amendments, have been published on the National Treasury and SARS websites. More general information on changes in tax rates, thresholds and other tax amendments is available in the 2026 Budget Review.
Comments on the 2026 draft TLAB and draft TALAB are invited until 28 August 2026.
