NATIONAL TREASURY PUBLISHES FOUR DRAFT BILLS FOR PUBLIC COMMENT

NATIONAL TREASURY PUBLISHES FOUR DRAFT BILLS FOR PUBLIC COMMENT

• 21 February 2024
• National Treasury
• SA Legal Academy

National Treasury has issued a media statement calling for input by 31 March on four draft Bills:

• the draft Rates & Monetary Amounts Bill (reflecting announcements made in Chapter 4 and Annexure C of the 2024 Budget Review, dealing with the increase of excise duties)
• the 2024 draft Revenue Laws Amendment Bill (in the context of ‘two-pot retirement reform’, the draft Bill’s overarching objective is to ‘clarify … existing language and to simplify the directives system for both administrators and the South African Revenue Service’ to ensure ‘efficient implementation’)
• accompanying explanatory memorandum
• the draft Global Minimum Tax Bill (intended to ‘enable South Africa to impose a multinational top-up tax at a rate of 15% on the profits of in-scope multinational enterprise groups’)
• accompanying explanatory memorandum
• the draft Global Minimum Tax Administration Bill (providing for the draft Global Minimum Tax Bill’s administration).

This is noting that, 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’.

• media statement
• Budget speech
• Budget review documents

Published by SA Legal Academy Policy Watch

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