Taxand South Africa looks at the full text of the draft Taxation Laws Amendment Bill, 2015.
The draft TLAB deals, inter alia, with the following aspects:
Closing a loophole to ensure consistent tax treatment on all retirement funds
Closing a loophole to avoid estate duty through excessive contributions to retirement funds
Proposing that a similar tax dispensation as applies to securities lending arrangements be introduced for the outright transfer of collateral
Providing transitional tax relief in respect of the unintended transitional tax consequences that may arise pursuant to the regulation of hedge funds
Providing measures to counter tax free corporate-migrations
Withdrawal of special foreign tax credits for service fees sourced in South Africa
Reinstatement of the controlled foreign company diversionary income rules in their form prior to the amendment and removal thereof in terms of the Taxation Laws Amendment Bill, 2011
Allowing municipalities to demarcate more areas as Urban Development Zones
Monetary threshold adjustments for an enterprise supplying commercial accommodation
Comments on the draft TLAB were due by 24 August 2015.
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Taxand's Take
A bill containing proposed amendments to South African tax law was published on 22 July 2015. The bill is aimed at implementing tax proposals announced by the Minister of Finance in the 2015 Budget Speech and contained the 2015 Budget Review