On July 31st, the National Treasury and the South African Revenue Service (SARS) published for public discussion, the 2020 draft Rates and Monetary Amounts, as well as the Amendment of Revenue Laws Bill (2020 draft Rates Bill), the 2020 draft Taxation Laws Amendment Bill (2020 draft TLAB) and the 2020 draft Tax Administration Laws Amendment Bill (2020 draft TALAB).
According to the media statement published by the National Treasury, the draft bills foresee the following main measures:
A – 2020 draft Rates Bill
• Amendments to the Personal Income Tax rates and monetary thresholds
• Adjustment to transfer duty rates to support the property market
• Increases of the excise duties on alcohol and tobacco
B – 2020 draft TLAB
• Introduction of export taxes on scrap metals
• Alignment of the carbon fuel levy adjustment with the Carbon Tax Act
C – 2020 draft TALAB
• Removal of the requirement to prove intent concerning certain offenses listed in the Fourth Schedule to the Income Tax Act, the Value-Added Tax Act, and the Tax Administration Act
• Withholding of a refund pending a criminal investigation
D – COVID-19 tax relief measures
• Simplified special tax relief for funds established to assist with COVID-19 disaster relief efforts
• Deferral of the payment of employees tax liability for tax compliant small to medium-sized enterprises
• A 90-day deferral for the payment of excise taxes on alcohol and tobacco.