National Treasury and SARS published the 2022 Draft Tax Bills for public comment on the on the 29th July .
The 2022 Draft Revenue Laws Amendment Bill (TLAB)contains proposed amendments dealing with the “two pot” retirement system. The proposed amendments give effect to the previous announcements made by the Minister in the February 2021 Budget Speech and November 2021 Medium Term Budget Policy Statement. These amendments also follow a discussion document published by National Treasury for public comment on 15 December 2021, titled “Encouraging South African households to save more for retirement”.
The 2022 Draft TLAB and 2022 draft TALAB contain the remainder of the tax announcements made in Chapter 4 and Annexure C of the 2022 Budget Review, which are legislatively more complicated and require greater consultation with the public. Key proposals included in the 2022 Draft Tax Administration Laws Amendment Bill (TLAB )are the following;
- Progressive increase in the carbon tax rate for 2023 to 2030;
- Vaping: Taxation of electronic nicotine and non-nicotine delivery systems;
- Extension of the Research and Development tax incentive sunset date;
- Impact of IFRS17 insurance contracts on the taxation of insurers;
- Reviewing the debtor’s allowance provisions to limit the impact on lay by arrangements.
Key proposals included in the 2022 draft TALAB are the following:
- Advance rulings under the Customs and Excise Act;
- Imposition of understatement penalty for employment tax incentives improperly claimed;
- Addressing tax compliance status system abuse.
National Treasury and SARS hereby invite comments in writing on the 2022 draft tax bills. Please forward written comments to the National Treasury’s tax policy depository by close of business on 29 August 2022.