globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

26 October 2018

South Africa introduces tax amendment bills

On 24 October 2018, South Africa’s Minister of Finance introduced the Taxation Laws Amendment Bill1 (TLAB) and the Tax Administration Laws Amendment Bill2 (TALAB) into Parliament.

The TLAB and the TALAB follow the draft TLAB and the draft TALAB which were initially published on 16 July 2018 for public comment.

The amendments initially proposed in the draft TLAB and the draft TALAB have remained relatively unchanged.

Amendments contained in the TLAB and TALAB include, inter alia:

  • Addressing anomalies in respect of medical tax credits
  • Amendments to the debt restructure rules
  • Amendments to the dividend stripping anti-avoidance rules
  • Amendments to the interaction between the dividend stripping anti-avoidance rules and the corporate reorganization rules
  • Amendments to the rules for debt-financed acquisitions of a controlling interest in an operating company
  • Amendments to the doubtful debt allowance
  • Introduction of new rules to address the use of foreign trusts to avoid tax in respect of controlled foreign companies
  • Extension of the Employment Tax Incentive
  • Removal of the requirement to submit returns in respect of dividends that are exempt or partially exempt
  • Inclusion of specific provisions relating to the process of correcting material errors on a tax invoice for Value Added Tax purposes.

Endnotes

1. B38 -2018.

2. B39 -2018.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Advisory Services (Pty) Limited, Johannesburg
  • Brigitte Keirby-Smith | brigitte.keirbysmith@za.ey.com
Ernst & Young Advisory Services (Pty) Limited, Durban
  • Candice Van Den Berg | candice.vandenberg@za.ey.com
Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London
  • Rendani Neluvhalani | rendani.mabel.neluvhalani@uk.ey.com
  • Byron Thomas | bthomas4@uk.ey.com
Ernst & Young LLP, Pan African Tax Desk, New York
  • Dele A. Olaogun | dele.olaogun@ey.com 

ATTACHMENT:

Document ID: 2018-6253

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2025, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more