Treasury invites you to comment on the sunset dates of certain tax incentives. Incentives (deductions) to be removed include;
- Deduction in respect of airport and port assets
- Deduction in respect of rolling stock
- Deduction in respect of low cost residential units
- Exemption in respect of films
Incentives put on watch;
- Urban development zones and learnership tax incentives
- Research and development tax incentive
- Tax provisions for travel and working from home
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SUMMARY
The National Treasury and the South African Revenue Service (SARS) today publish, for public comment, the 2021 Draft Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2021 Draft Rates Bill), the 2021 Draft Financial Sector Levies Bill, the draft Regulations on amounts for purposes of definition of retirement annuity funds, draft Regulations on Unemployment Insurance Fund remuneration limit and invitation to make submissions on sunset dates of certain tax incentives.
The 2021 Draft Rates Bill, the Draft Regulations on amounts for purposes of definition of retirement annuity funds, the Draft Regulations on Unemployment Insurance Fund remuneration limit contains announcements made in Chapter 4 and Annexure C of the 2021 Budget Review that deal with changes to rates and monetary thresholds and increases of excise duties.
The 2021 Draft Financial Sector Levies Bill is aimed at imposing levies on the financial sector to fund the Prudential Authority and Financial Sector Conduct Authority for the costs of regulating financial institutions as a result of the implementation of the Twin Peaks regulatory system. Other Twin Peaks institutions referred are also funded in terms of the Financial Sector Regulation Act.
The Regulations on amounts for purposes of definition of retirement annuity funds and the Regulations on Unemployment Insurance Fund remuneration limit will be published in the Government Gazette after taking into account public comments to be received.
In addition, we publish a list of tax incentives that are scheduled to lapse upon reaching their respective sunset dates. Taxpayers are invited to make detailed submissions on the sunset dates ofthese tax incentives, and why they should not be allowed to lapse upon reaching these dates. This information will be considered in determining the extent to which these tax incentives enhance efficiency, transparency and fairness in the business tax system, while facilitating economic growth through improved investment and competitiveness. In line with the policy intent highlighted in the 2020 and 2021 Budgets, government is reducing the number of tax incentives in the tax system.