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The National Treasury released the Tax Amendments Bill (TLAB) and the Tax Administration Amendment Bill (TALAB) for public consultation.
TLAB and TALAB include legislative amendments for more complex tax proposals. The Treasury said these bills complemented the Monetary Rates and Monetary Amounts Bill and the Revenue Law Amendments, which was released on February 21 at the budget date, February 21, 2018. 2018.
They therefore exclude the tax proposals covered by the bill on rates, which related to the following modifications:
- Value-added tax rate
- Tax brackets of individuals
- The inheritance tax rate and the gift tax rate; and
- Excises
In reviewing the section on personal income tax, the amendments include a number of policy changes and bug fixes, said Brian Dennehy, chief from the law firm Webber Wentzel. ] Dennehy presented a sample of these corrections, and when they will be applied
Tax Credits for Medical Expenses
An amendment to Section 6A of the Income Tax Act. Income tax has been proposed the medical aid costs of an individual do not give entitlement to each tax credit application for that dependent.
This amendment will come into effect on March 1, 2018 and will apply to taxation years beginning on or after that date.
Transfers between pension funds of the same employer
Amendments to the Seventh Schedule to the Income Tax Act, which ensure that transfers between credit unions Employer pension does not create a taxable benefit in the hands of the employee.
These amendments will apply, retroactively, to the taxation years beginning on or after March 1, 2017.
Harmonization of the Tax Treatment of Retirement Funds
Modifications have been proposed to the definitions of conservation or provident funds to ensure that, as with pension funds, an expatriate can, when of his emigration, withdraw the entire value after tax.
The Income Tax Act currently permits the transfer of funds from a pension or provident fund to a pension fund only after reaching normal age of retirement when a taxpayer has not yet retired.
similarly allow transfers to funds of preservation or preservation of provident. It is proposed that these amendments apply to contributions beginning on March 1, 2019.
Work Income Tax (ETI) Extension Plan [19659002] The ETI scheme was introduced in January 2014 to promote the employment of young workers.
After an initial period of three years, the ETI scheme was extended by two additional years. This extended period expired on February 28, 2019.
As a result, a further extension of the ETI Plan for five years is being proposed, which means that the ETI will lapse on February 28, 2024. The Proposed Amendments will come into force at the date of promulgation of the TLAB 2018 project.
Read: One of the best ways to pay less taxes this year: expert
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