GLOBAL MINIMUM TAX ADMINISTRATION BILL HEADS TO PARLIAMENT

GLOBAL MINIMUM TAX ADMINISTRATION BILL HEADS TO PARLIAMENT

• 23 October 2024
• Taxation
• SA Legal Academy

Please note: In anticipation of the 30 October 2024 Medium Term Budget Policy Statement and the tabling of various associated Bills in Parliament, the following documents have also been gazetted: Division of Revenue Amendment Bill explanatory summary (24 October 2024)

The South African Revenue Service has gazetted a notice announcing the Global Minimum Tax Administration Bill’s imminent introduction in Parliament. Also serving as a pre-tabling explanatory summary, the document notes that the Bill’s purpose is to ‘introduce by reference the administrative provisions of the global anti-base erosion model rules’ for Global Minimum Tax Bill administration. Both global tax Bills were released in draft form in February 2024 for public comment, as SA Legal Academy reported at the time.

To provide more context, in his 2024/25 Budget speech Finance Minister Enoch Godongwana said that ‘over the next few years’ government will implement ‘a global minimum corporate tax to limit the negative effects of tax competition’. According to the Minister, ‘multinational corporations with annual revenue exceeding €750 million will be subject to an effective tax rate of at least 15%, regardless of where their profits are generated. The proposed reform is expected to yield an additional R8 bn in corporate tax revenue in 2026/27’.

An explanatory summary of this year’s Tax Administration Laws Amendment Bill has also been gazetted.

Both Bills are likely to be tabled on 30 October 2024, with the Medium Term Budget Policy Statement.

• Global Minimum Tax Administration Bill’s explanatory summary
• Tax Administration Laws Amendment Bill’s explanatory summary
• Budget speech

Published by SA Legal Academy Policy Watch

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