Publication of the 2020 tax acts and accompanying documentation
On 15 January 2021, President Cyril Ramaphosa signed into law the Rates and Monetary Amounts and Amendment of Revenue Laws Act, 2020, (Act No. 22 of 2020) (2020 Rates Act), Taxation Laws Amendment Act, 2020 (Act No 23 of 2020) (2020 TLAA) and Tax Administration Laws Amendment Act, 2020 (Act No. 24 of 2020) (2020 TALAA). These Acts were published in the Government Gazette of 20 January 2021. These Acts give legislative effect to the tax proposals as outlined by the Minister of Finance in his annual National Budget Speech delivered on 26 February 2020.
The 2020 Rates Act gives effect to changes in rates and monetary thresholds and increases of the excise duties on alcohol and tobacco. The 2020 TLAA contains more complex, technical and anti-avoidance legislative changes. The 2020 TALAA deals with tax proposals that are technical and administrative in nature.
A Final Response Document on the 2020 Rates and Monetary Amounts and Amendment of Revenue Laws Bill (2020 Rates Bill), 2020 Taxation Laws Amendment Bill (2020 TLAB) and 2020 Tax Administration Laws Amendment Bill (2020 TALAB), as well as the Explanatory Memorandum to the 2020 Taxation Laws Amendment Bill (Explanatory Memorandum) and the Memorandum on the Objects of the 2020 Tax Administration Laws Amendment Bill (Memorandum of Objects) are also published today.
The Final Response Document updates the Draft Response Document previously published to take into account submissions and decisions made following further inputs made by stakeholders, the Standing Committee on Finance and the Select Committee on Finance during public hearings on the Bills. The Disaster Management Tax Relief Act, 2020 and the Disaster Management Tax Relief Administration Act, 2020 were signed by President Cyril Ramaphosa on 5 November 2020 and were published in the Government Gazette on the same date.
These Acts provide the necessary legislative amendments required to implement tax measures aimed at providing tax relief in relation to the effects of the COVID-19 pandemic. The 2020 Rates Act, 2020 TLAA, 2020 TALAA, Final Response Document, Explanatory Memorandum and Memorandum of Objects, Disaster Management Tax Relief Act, 2020 and the Disaster Management Tax Relief Administration Act, 2020 can be found on the National Treasury (www.treasury.gov.za) and SARS (www.sars.gov.za) websites.
