Summary

The 2019 Draft TLAB gives effect to the following key tax proposals announced in the 2019 Budget Review:

 Aligning the effective date of tax neutral transfers between retirement funds with the effective date of annuitisation for provident funds

 Adjusting the withholding tax treatment of surviving spouses’ pensions to limit tax debts on assessment

 Addressing abusive arrangements aimed at avoiding the anti-dividend stripping provisions

 Clarifying the interaction between corporate reorganisation rules and other provisions of the Income Tax Act

 Refining the tax treatment of long-term insurers

 Refining investment criteria and anti-avoidance measures for the Special Economic Zone regime

 Limiting the allowable deduction for investors investing in a venture capital company

 Reviewing the controlled foreign company comparable tax exemption and addressing the circumvention of the anti-diversionary rules 3

 Reviewing section 72 of the VAT Act

The 2019 Draft TALAB gives effect to the following key tax proposals:

 Removal of requirement to submit a declaration to a regulated intermediary in respect of tax free investments

 Authorisation for the Commissioner to prescribe rules relating to the making of advance foreign currency payments

 Alignment of time limitations on requesting refunds  Model mandatory disclosure rules and non-compliance penalties

 Tax compliance certificates