On 11 November 2021, Tax Bills 2021 (Taxation Laws Amendment Bill (TLAB), Tax Administration Laws Amendment Bill (TALAB), Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Rates Bill)) were tabled in the Parliament. The National treasury published the draft bill for public comment by the end of July 2021 and Parliament sought comment on the proposed legislation by the end of August 2021.
2021 Taxation Laws Amendment Bill (TLAB)
The following proposals contained in 2021 TLAB Bill:
- Strengthening the rules dealing with limitation of interest deductions in respect of debt owed to persons not subject to tax;
- Restricting the set-off of the balance of assessed losses in determining taxable income;
- Refining the time frames of compliance requirements of the industrial policy projects tax incentive;
- Curbing the abuse of the Employment Tax Incentive;
- Applying tax on retirement fund interest when an individual ceases to be a tax resident;
- Strengthening anti-avoidance rules in respect of loans between trusts;
- Refinements to the corporate re-organization rules; and
- Clarifying the scope and definition of carbon sequestration.
2021 Tax Administration Laws Amendment Bill (TALAB)
The following key proposals include in 2021 TALAB Bill:
- Administrative non-compliance penalties based on estimates for non-submission of six-monthly employees’ tax returns;
- Removal of double-penalty for the same incidence of non-compliance relating to employees’ tax;
- Expanding the purposes for which air cargo may be removed to degrouping depots;
- Amendments related to changes in the accreditation system; and
- Increasing the caps for refunds and underpayments of duties.
2021 Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Rates Bill)
Government proposed the following provisions:
- Changes in rates and monetary thresholds to the personal income tax tables; and
- Increases of the excise duties on alcohol and tobacco.
