• Adami Geldenhuys

Draft 2021 Tax Bills published for comments by 28 August 2021 (Updated)

Updated: Jan 20

NOTE:

The Bills mentioned in this post were subsequently passed by Parliament and published in the government gazette.

See New Tax and Revenue Laws gazetted on 19 January 2022 at

https://www.lexinfo.co.za/post/new-tax-and-revenue-laws-gazetted-on-19-january-2022 for more information.


The second batch of draft Tax Bills was released by National Treasury on 12 August 2021. The first batch was released on 28 July 2021. Comments for both batches are invited by 28 August 2021.

A document entitled, Explanatory Notes on the Emergency Tax Measures in Response to the Continuing Covid-19 Pandemic and Recent Unrest in the Country, was also made available. This document sets out the relief that will be contained in the proposed draft Taxation Laws Amendment Bill, 2021 (second batch) and the proposed draft Tax Administration Laws Amendment Bill, 2021 (second batch).


Second Batch of Draft Tax Bills and Media Statement released on 12 August 2021


Draft Tax Administration Laws Amendment Bill, 2021 (Second Batch)

“To amend the Disaster Management Tax Relief Administration Act, 2020, so as to amend provisions and to insert new provisions; and to provide for matters connected therewith.”

Comments invited by 28 August 2021.

Draft Bill: View here.


Draft Taxation Laws Amendment Bill, 2021 (Second Batch)

“To amend the Disaster Management Tax Relief Act, 2020, so as to amend provisions and to insert new provisions; and to provide for matters connected therewith.”

Comments invited by 28 August 2021.

Draft Bill: View here.


Media Statement: South African Revenue Service. Publication of the second batch of the 2021 Draft TLAB & TALAB – Dealing with emergency tax measures in response to the continuing Covid-19 pandemic and recent unrest in the country. 12 August 2021.

Extract from media statement: “Following the announcement by the Minister of Finance on 28 July 2021 on the emergency tax measures as part of the fiscal package outlined by President Cyril Ramaphosa on 25 July 2021, which was in response to the continuing Covid-19 pandemic and recent unrest in the country that resulted in the destruction of businesses, the National Treasury and the South African Revenue Service (SARS) today publish, for public comment, the second batch of the 2021 Draft Taxation Laws Amendment Bill and 2021 Draft Tax Administration Laws Amendment Bill (TALAB). The second batch of draft tax bills contains emergency tax measures taking effect on 1 August 2021 and seek to make amendments in the Disaster Management Tax Relief Act, 2020 and Disaster Management Tax Relief Administration Act, 2020. …“

National Treasury and SARS hereby invite comments in writing on the second batch of the 2021 draft tax Bills. Please forward written comments to the National Treasury’s tax policy depository at 2020AnnexCProp@treasury.gov.za and SARS at acollins@sars.gov.za by close of business on 28 August 2021.”


First Batch of Draft Tax Bills, Explanatory Memoranda and Media Statement released on 28 July 2021


Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill, 2021

“To fix the rates of normal tax; to amend the Income Tax Act, 1962, so as to amend rates of tax and monetary amounts; to amend the Customs and Excise Act, 1964, so as to amend rates of duty in Schedule 1 to that Act; to insert new tariff items; to delete tariff items; to delete rebate items; to insert rebate items; to amend the Carbon Tax Act, 2019, so as to amend rate of tax; to amend the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2020, so as to provide for corrections; and to provide for matters connected therewith.”

Comments invited by 28 August 2021.

Draft Bill: View here.

Media Statement: View here.


Draft Tax Administration Laws Amendment Bill, 2021.

“To—

  • amend the Estate Duty Act, 1955, so as to make textual corrections;

  • amend the Income Tax Act, 1962, so as to enable the Commissioner to request certain information by public notice; to align the provision with regards to submission of a return by a foreign person in respect of withholding tax on royalties with that of withholding tax on interest; to align the refund limitation rules for dividends paid in specie with that of dividends paid in cash; to provide that the prescription periods will not apply with regards to certain deductions claimed by farmers and to provide for extended record-keeping periods; to provide for a penalty to be raised on an estimate of employees’ tax; and to provide for the deletion of a penalty;

  • amend the Customs and Excise Act, 1964, so as to make technical corrections; to expand the purposes for which air cargo may be removed to degrouping depots to include consolidation and removal to transit sheds for export; to effect amendments consequential to changes to the SARS customs accreditation system; to increase the minimum thresholds for underpayments of duties by taxpayers which the Commissioner may condone as well as the minimum thresholds for refunds of duty to taxpayers; to expand the scope of matters that SARS may investigate to confirm the 3 validity of a diesel refund claim; and to make the unlawful possession or use of a customs uniform an offence;

  • amend the Tax Administration Act, 2011, so as to provide for an extension in submission of a return or relevant material with regard to assessments based on an estimate; and to provide for an exception to prescription, and to provide for matters connected therewith.”

Comments invited by 28 August 2021.

Draft Bill: View here.

Explanatory Memorandum: View here.

Media Statement: View here.


Draft Taxation Laws Amendment Bill, 2021

“To amend the Transfer Duty Act, 1949, so as to amend a provision; to amend the Estate Duty Act, 1955, so as to amend certain provisions; to amend the Income Tax Act, 1962, so as to amend certain definitions; to amend certain provisions; to make new provision; to amend certain Schedules; and to replace a Schedule; to amend the Customs and Excise Act, 1964, so as to make provision for continuations; to amend the Value-Added Tax Act, 1991, so as to amend certain provisions; and to amend a Schedule; to amend the Securities Transfer Tax Act, 2007, so as to amend certain provisions; to amend the Employment Tax Incentive Act, 2013, so as to amend certain provisions; to amend the Taxation Laws Amendment Act, 2013, so as to amend certain effective dates; to amend the Carbon Tax Act, 2019, so as to amend certain provisions; and to amend a Schedule; to amend the Disaster Management Tax Relief Act, 2020, so as to amend a provision; to amend the Taxation Laws Amendment Act, 2020, so as to amend a provision; and to provide for matters connected therewith.”

Comments invited by 28 August 2021.

Draft Bill: View here.

Explanatory Memorandum: View here.

Media Statement: View here.


Image: Pixabay


Updated: 20 January 2022

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