2024 Draft Tax Legislation

South Africa
06/08/2024
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National Treasury and the South African Revenue Service released the following draft tax bills and tax regulations:

  • 2024 draft Taxation Laws Amendment Bill (Draft TLAB);
  • 2024 draft Revenue Laws Amendment Bill (Draft RLAB);
  • 2024 draft Tax Administration Laws Amendment Bill (Draft TALAB);
  • draft regulations on electronic services (dealing with supplies to vendors in South Africa, group supplies, and revising the definition of telecommunication services);
  • draft regulations on the domestic reverse charge relating to valuable metal;
  • draft regulations on the method for determining the VAT liability in respect of casino table games of chance, and
  • draft regulations on amendments to the Carbon Offset Regulations prescribing carbon offsets.

Tax proposals under the draft bills include the following:

Draft TLAB

  • addressing the connected person definition in respect of partnerships;
  • relaxing the assessed loss restriction rule in certain circumstances;
  • amending third party backed share anti-avoidance rules to clarify same;
  • further amending the amalgamation transaction rules;
  • amending the definition of “exchange item”;
  • amending the rules governing the interaction of the set off of assessed losses and exchange differences;
  • providing an investment allowance for automotive companies investing in production capacity for new energy vehicles;
  • addressing the VAT treatment of supplies of services to non-resident subsidiaries of companies based in South Africa;
  • addressing the prescription period in respect of input tax;
  • introducing measures to prevent the abuse of the employment tax incentive;

Draft RLAB 2024

  • simplifying the directives system to efficiently implement the ‘two-pot’ retirement system;

Draft TALAB 2024

  • providing for access to tax records (in line with the Constitutional Court judgment);
  • addressing the treatment of non-resident vendors with limited or no physical presence in South Africa;
  • addressing the timing of VAT on imported services;
  • improving the efficiency of the dispute resolution rules; and
  • removing the grace period for a public officer appointment.

The due date for public comments is 31 August 2024 (16 August 2024 in respect of the Draft RLAB).

CMS is happy to assist you with any queries or comments that you may have in relation to the proposed draft legislation.

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