Treasury Releases Taxation Laws Amendment Bills for Comment

National Treasury

National treasury has released the Draft Taxation Laws Amendment Bills 2011 for public comment.

According to a media statement released by treasury, the bills give effect to most of the 2011 budget review tax proposals as well as other urgent measures.

Written comment is invited until 4 July 2011.

The two bills consist of a money bill and an ordinary bill covering administration.
 

Some of the proposed amendments include:

• Further personal income tax relief
• A third rebate for individuals over 75 years
• Transfer duty relief
• Adjustments to monetary thresholds
• Strengthening of learnership and industrial policy incentive programmes
• Increase in turnover tax exemption threshold for micro-businesses
• Measures to promote South Africa as a gateway to the region
• New anti-avoidance measures

The proposed amendments are described as holding the potential to contribute towards inclusive growth and development.

Treasury pointed out that the taxation of gambling winnings and contributions to retirement funds will be dealt with in a second set of bills.

The bills deal with a number of important issues including:

• Rates and thresholds
• Income tax-individuals, savings and employment
• Income tax-business
• Income tax-international
• Value-added tax

In the statement, treasury also referred to possible future legislation.

Discussion documents on retirement reforms are to be released in July 2011. The documents will focus on the retirement contribution base and how contributions to retirement funds are treated in terms of tax.

A discussion document covering the conversion of medical deductions into medical credits will be released next week.

As regards the taxation of gambling winnings, further details will be published for comment by the end of July 2011.

Treasury is set to brief the standing committee on finance on the two bills later this month. Public hearings will follow thereafter.

All comments received will be considered and any necessary revisions to the bills will be introduced.

Sabinet Cape Town Office