Parliament passes 2021 Tax Bills

income tax scaled
23 Dec 2021

Parliament has passed the 2021 Tax Bills and sent them to president Ramaphosa for assent.

The Taxation Laws Amendment Bill (TLAB), Tax Administration Laws Amendment Bill (TALAB) and Rates and Monetary Amounts and Amendment of Revenue Laws Bill (Rates Bill) were tabled in parliament on 11 November 2021 during the Medium Term Budget Policy Statement (MTBPS).

Key tax proposals contained in the 2021 TLAB include the following:

  • 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 timeframes 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 reorganisation rules; and
  • Clarifying the scope and definition of carbon sequestration.

Key tax proposals contained in the 2021 TALAB include the following:

  • 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.

Key tax proposals contained in the 2021 Rates Bill include the following:

  • Changes in rates and monetary thresholds to the personal income tax tables; and
  • Increases of the excise duties on alcohol and tobacco.

Parliament has also passed the 2021 Adjustments Appropriation Bill and sent it to president Ramaphosa for assent.

The bill was tabled in parliament on 11 November 2021 during the MTBPS.

The bill seeks to effect adjustments to the appropriation of money from the National Revenue Fund for the requirements of the State in respect of the 2021/22 financial year; and to provide for matters incidental thereto.

In its report, the standing committee on appropriations welcomed the proposed additional allocation of R50.2 million to the South African National Roads Agency for toll revenue loss and R12.1 million for damage to property during the July 2021 unrest.

The committee also welcomed the proposed allocation of R7.1 billion earmarked in the 2021 budget, particularly proposed allocations towards the Presidential Youth Employment Initiative, and the proposed R2.96 million roll-over to the Presidency for the implementation of action plans to address gender-based violence.

The committee adopted the bill without amendments.

The select committee on appropriations also passed the bill without amendments.

See also:

(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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