On 20 January 2021, the Treasury Department Officially published the 2020 Tax Amendment Acts. The following Amendment Acts were promulgated:
- Rates and Monetary Amounts and Amendment of Revenue Laws Act 22 of 2020.
- Taxation Laws Amendment Act 23 of 2020 (TLAA).
- Tax Administration Laws Amendment Act 24 of 2020 (TALAA).
The 2020 Rates Act gives effect to changes in rates and monetary thresholds to the personal income tax tables and increases of the excise duties on alcohol and tobacco. The 2020 TLAA contains a change to the definition of “affected transaction” for transfer pricing purposes. The amended definition will be used to address situations when a tax benefit is indirectly derived by a South African resident as a result of its shareholding in a controlled foreign company (CFC). The 2020 TALAA deals with tax proposals that are technical and administrative in nature, such as 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 for outstanding returns under the Skills Development Levies Act and the Unemployment Insurance Contributions Act.
