2022 CORPORATE TAX POLICY AND ADMINISTRATIVE PROPOSALS
As part of the annual review, the following corporate tax policy and administrative adjustments were proposed on 23 February 2022:
- The 2021 amendments to the definition of contributed tax capital are planned to become effective on 1 January 2023. These amendments will be revisited during the 2022 review cycle to evaluate the impact thereof;
- The Legislator intends to introduce amendments to the corporate tax reorganisation provisions to further refine said provisions;
- The Legislator plans to introduce amendments to clarify that the assessed loss limitation provisions should be applied before taking into account any mining capital expenditure;
- Legislative amendments will be proposed to clarify that the provisions of section 11(e) cannot be applied where the relevant asset was acquired by a government grant in kind;
- Legislative amendments will be introduced to clarify certain aspects of the controlled foreign company provisions;
- Further amendments to section 72 of the VAT Act in respect of decisions regarding the application of provisions that result in difficulties, anomalies or incongruities will be made;
- The regulations prescribing electronic services for VAT purposes will be reviewed to ensure that the scope is in line with the OECD BEPS Action 1 Report;
- Inclusion of relevant legislative amendments to provide for an enabling framework for advance rulings in respect of customs and excise related matters to be made;
- The provisional tax system will be reviewed to ensure that it is in line with international developments;
- The introduction of a possible VAT registration exemption for non-resident suppliers that supply electronic services which exceed R1 million but that is supplied on a once-off basis;
- The relevant legal framework will be reviewed to allow SARS to conduct joint audits with foreign revenue authorities; and
- The proposed imposition of understatement penalties where an employer abused the provisions of the Employment Tax Incentive Act, where such abuse resulted in a reimbursement by SARS.
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