On 17 January 2019, the Taxation Laws Amendment Bill¹ and the Tax Administration Laws Amendment Bill² (which were introduced by South Africa's Minister of Finance into Parliament on 24 October 2018) were promulgated as Acts of Parliament.³

The amendments now enacted cover, among others:

• Addressing anomalies in respect of medical tax credits
• Amendments to the debt restructure rules
• Amendments to the dividend stripping anti-avoidance rules regarding preference shares
• Amendments to the interaction between the dividend stripping anti-avoidance rules and the corporate reorganization rules
• Amendments to the rules for debt-financed acquisitions of a controlling interest in an operating company
• Amendments to the doubtful debt allowance
• The introduction of new rules to address the use of foreign trusts to avoid tax in respect of controlled foreign companies
• Extension of the Employment Tax Incentive
• Addressing tax avoidance through the use of collateral arrangements
• Review of venture capital rules
• Review of international shipping rules

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ENDNOTES

¹ B38 -2018.

² B39 -2018.

³ Taxation Laws Amendment Act No 23 of 2018 and Tax Administration Laws Amendment Act No 22 of 2018.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young Advisory Services (Pty) Ltd., Johannesburg

• Brigitte Keirby-Smith
  brigitte.keirbysmith@za.ey.com

Ernst & Young Advisory Services (Pty) Ltd., Cape Town

• Ide Louw
  ide.louw@za.ey.com

Ernst & Young Advisory Services (Pty) Ltd., Durban

• Candice Van Den Berg
  candice.vandenberg@za.ey.com

Ernst & Young LLP (United Kingdom), Pan African Tax Desk, London

• Rendani Neluvhalani
  rendani.mabel.neluvhalani@uk.ey.com
• Byron Thomas
  bthomas4@uk.ey.com

Ernst & Young LLP, Pan African Tax Desk, New York

• Dele A. Olaogun
  dele.olaogun@ey.com

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ATTACHMENT

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