The South African Finance Minister delivered his 2014 Budget Speech on 26 February 2014. Among the general corporate tax proposals in the budget are measures to:
- Limit interest deductions for reorganizations and acquisitions;
- Address the refund mechanism for non-cash dividends;
- Provide changes to research and development (R&D) tax incentives;
- Provide tax relief with respect to debt reduction;
- Relax the venture capital company regime;
- Revise the treatment for claiming a capital allowance on improvements to the land and to modify the real estate investment trust (REIT) rules;
- Extend contributed tax capital roll-overs to include instances when deferred shares are converted to ordinary shares; and
- Revise the rules for third-party backed shares.
The 2014 budget also includes corporate tax measures concerning financial services (e.g., long-term insurance, foreign reinsurance, and savings bonds) and for the oil and gas industry (e.g., tax incentives). The budget also proposed value added tax (VAT) changes.
