Small Business Tax Amnesty and Amendment of Taxation Laws Act 9 of 2006

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9 of 2006

The Small Business Tax Amnesty and Amendment of Taxation Laws Act 9 of 2006 aims:

  • to provide for a Small Business Tax Amnesty in respect of the voluntary disclosure by an applicant of any failure to comply with certain Acts administered by the Commissioner;
  • to amend the Transfer Duty Act, 1949, so as:
    • to adjust the rates of duty;
    • to effect a textual amendment and to provide for an exemption from duty in the case of an acquisition by a spouse on death or dissolution of marriage;
  • to amend the Estate Duty Act, 1955, so as to increase the estate duty exemption;
  • to amend the Income Tax Act, 1962, so as:
    • to fix the rates of normal tax payable by persons other than companies in respect of taxable income for the years of assessment ending 28 February 2007 and by companies in respect of taxable income for the years of assessment ending during the 12 months ending on 31 March 2007;
    • to amend a definition;
    • to increase the primary and secondary rebates;
    • to further regulate the taxation of travelling allowances;
    • to further extend the deeming provision on the disposal of listed shares to individuals;
    • to further regulate the exemption in respect of interest and foreign dividends;
    • to delete obsolete provisions and to provide for certain amounts received by grant to be exempt from normal tax;
    • to further increase the turnover limit for small business corporations;
    • to further regulate provisions relating to learnership agreements;
    • to reinsert certain provisions relating to the determination of gains and losses on foreign exchange transactions;
    • to increase the annual donations tax exemption;
    • to adjust the percentage of a motor vehicle allowance which is subject to employees' tax;
    • to further adjust the formula for determining the taxable benefit on employer provided residential accommodation;
    • to further regulate the provisions for determining a taxable benefit in respect of free or cheap transport provided to employees;
    • to further regulate the determination of a taxable benefit resulting from employer provided medical treatment;
    • to increase the annual exclusion in respect of capital gains or capital losses;
    • to increase the exclusion for capital gains tax purposes of the amount realised from the disposal of a primary residence;
    • to increase the exclusion for capital gains tax purposes of the amount realised from the disposal of an asset of or interest in a small business; and
    • to further regulate the provisions relating to the disposal of interests in equity share capital of foreign companies;
  • to amend the Customs and Excise Act, 1964, so as:
    • to amend Schedule No. 1; and
    • to provide for the continuation of certain amendments to the Schedules;
    • to exempt certain marketable securities which are participatory interests in a collective investment scheme from stamp duty; and
    • to provide for relief in respect of leases;
  • to amend the Value-Added Tax Act, 1991, so as:
    • to amend and insert definitions in respect of municipalities and municipal rates;
    • to insert certain deeming provisions; to provide for zero-rating of municipal rates;
    • to align certain provisions with regard to fuel levy items with the Customs and Excise Act, 1964;
    • to regulate certain input tax deductions and adjustments by municipalities; and
    • to provide for certain liabilities and limitation of refunds of municipalities for tax;
  • to amend the Tax on Retirement Funds Act, 1996, so as to adjust the rate of tax; and
  • to amend the Uncertificated Securities Tax Act, 1998, so as:
    • to amend a definition;
    • to provide for the taxation of the change in the full beneficial ownership in securities, or any of the rights or entitlements in respect thereof;
    • to exempt certain marketable securities which are participatory interests in a collective investment scheme from uncertificated securities tax; and
    • to withdraw the power of district and metropolitan municipalities to levy and claim regional services levies; and
  • to provide for matters connected therewith.

Amends

Commencement

1 June 2006, unless otherwise indicated

Amendments