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25 February 2016

South Africa releases 2016/17 Budget

South Africa's Minister of Finance, Pravin Gordhan, delivered his 2016/17 Budget Speech on February 24. In summary, the Minister noted several measures, including but not limited to: (i) base erosion and profit shifting (BEPS) measures, such as transfer pricing abuse, and misuse of treaties will be pursued drawing on the work of the likes of the Organization for Economic Co-operation and Development. The South African Revenue Service (SARS) is further well placed to take advantage of the new Common Reporting System, and SARS also will implement country-by-country reporting; and (ii) the concept of share buy-backs frequently used to exit investors in a tax free manner will be revisited.

A Tax Alert prepared by Ernst & Young South Africa, and attached below, provides additional details.

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Document ID: 2016-0379

 

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