Discussion Papers

Discussion Papers are published by National Treasury or SARS to obtain public comment on specific tax policy matters before draft tax legislation or a draft interpretation note is prepared.

2024
Media Statement – Publication of discussion documents for public comment The taxation of alcoholic beverages The National Treasury has published a policy review on the taxation of alcoholic beverages, which builds on the previous excise tax policy review in 2014 and proposes adjustments to the current policy framework. The discussion document covers developments in the alcoholic beverages industry, including changes in the regulatory landscape, the prevalence of alcohol consumption, illicit trade in alcoholic beverages, international observations on alcohol taxation, the potential use of minimum unit pricing in the long term, and other administrative policy considerations in line with the concerns that have been raised by stakeholders. With this publication, the National Treasury requests stakeholders to submit detailed written comments and proposals to assist government to further develop an appropriate excise policy framework to reduce the harmful use of alcohol. After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget. Please forward your written comments to [email protected] by the extended closing date of 14 February 2025. Phase two of the carbon tax South Africa has made commitments under the Paris Agreement to reduce emissions in the range of 398 to 510 million tonnes carbon dioxide equivalent (tCO₂e) by 2025 and 350 to 420 million tCO₂e by 2030, and to reach net zero emissions by 2050. The Nationally Determined Contributions (NDCs) set out policies and measures to achieve these mitigation goals and adapt to climate change, and the finance requirements to support the transition to a lower carbon climate resilient economy. Carbon tax is an integral part of the package of policy measures aimed at addressing climate change as recommended in the 2011 National Climate Change Response Policy and the 2012 National Development Plan. In the 2024 Budget, government announced its intention to publish a carbon tax discussion paper for public comment. This paper puts forward proposals on phase two of the carbon tax design from 2026 to 2035 for consultation, considering South Africa’s NDC commitments. The discussion document includes proposed adjustments to the basic tax-free allowance, carbon offsets, the electricity levy, the renewable energy premium and the energy efficiency savings tax incentive. Stakeholders are invited to submit written comments on the draft proposals contained in this paper to [email protected]. After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget. The closing date for comments is close of business on 13 December 2024. The tax treatment of collective investment schemes This discussion document stems from a statement in the 2020 Budget Review that National Treasury will undertake a review on the income tax treatment of amounts received by portfolios of collective investment schemes. In 2018, amendments were proposed in the Taxation Laws Amendment Bill to provide certainty on when these amounts should be treated as revenue instead of capital, which would impact the tax treatment of those amounts. After consultations, government opted to withdraw the proposed amendments to allow additional time to engage with industry to find solutions that will not negatively affect roleplayers. This document investigates the policy considerations of the taxation of collective investment schemes under section 25BA of the Income Tax Act, 1962, and puts forward various policy options. Stakeholders are invited to submit written comments on the draft proposals contained in this paper to [email protected]. After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget. The closing date for comments is close of business on 13 December 2024. Comments may be submitted by close of business on 13 December 2024 to [email protected].

2024

Media Statement – Publication of discussion documents for public comment

The taxation of alcoholic beverages
The National Treasury has published a policy review on the taxation of alcoholic beverages, which builds on the previous excise tax policy review in 2014 and proposes adjustments to the current policy framework.

The discussion document covers developments in the alcoholic beverages industry, including changes in the regulatory landscape, the prevalence of alcohol consumption, illicit trade in alcoholic beverages, international observations on alcohol taxation, the potential use of minimum unit pricing in the long term, and other administrative policy considerations in line with the concerns that have been raised by stakeholders.

With this publication, the National Treasury requests stakeholders to submit detailed written comments and proposals to assist government to further develop an appropriate excise policy framework to reduce the harmful use of alcohol. After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget.

Please forward your written comments to [email protected] by the extended closing date of 14 February 2025.

Phase two of the carbon tax
South Africa has made commitments under the Paris Agreement to reduce emissions in the range of 398 to 510 million tonnes carbon dioxide equivalent (tCO₂e) by 2025 and 350 to 420 million tCO₂e by 2030, and to reach net zero emissions by 2050. The Nationally Determined Contributions (NDCs) set out policies and measures to achieve these mitigation goals and adapt to climate change, and the finance requirements to support the transition to a lower carbon climate resilient economy. Carbon tax is an integral part of the package of policy measures aimed at addressing climate change as recommended in the 2011 National Climate Change Response Policy and the 2012 National Development Plan.

In the 2024 Budget, government announced its intention to publish a carbon tax discussion paper for public comment. This paper puts forward proposals on phase two of the carbon tax design from 2026 to 2035 for consultation, considering South Africa’s NDC commitments. The discussion document includes proposed adjustments to the basic tax-free allowance, carbon offsets, the electricity levy, the renewable energy premium and the energy efficiency savings tax incentive.

Stakeholders are invited to submit written comments on the draft proposals contained in this paper to [email protected]. After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget. The closing date for comments is close of business on 13 December 2024.

The tax treatment of collective investment schemes
This discussion document stems from a statement in the 2020 Budget Review that National Treasury will undertake a review on the income tax treatment of amounts received by portfolios of collective investment schemes. In 2018, amendments were proposed in the Taxation Laws Amendment Bill to provide certainty on when these amounts should be treated as revenue instead of capital, which would impact the tax treatment of those amounts. After consultations, government opted to withdraw the proposed amendments to allow additional time to engage with industry to find solutions that will not negatively affect roleplayers.

This document investigates the policy considerations of the taxation of collective investment schemes under section 25BA of the Income Tax Act, 1962, and puts forward various policy options. Stakeholders are invited to submit written comments on the draft proposals contained in this paper to [email protected]. After the public consultation process is concluded, the draft proposals will be revised to consider public comments and announcements will be made in the 2025 Budget. The closing date for comments is close of business on 13 December 2024.

Comments may be submitted by close of business on 13 December 2024 to [email protected].

2023
Discussion Paper on Value-Added Tax Modernisation SARS has published a Discussion Paper on VAT Modernisation. This is in pursuit of its strategic objective of modernising its systems to provide digital and streamlined online services and making it easy for taxpayers to comply with their obligations. This discussion paper sets out the high-level vision for the modernisation of the South African Value-Added Tax (VAT) administrative framework. The intention of publishing the discussion paper is to invite businesses (vendors), accounting system software developers or suppliers, technology entities, recognised controlling bodies, public finance entities, municipal finance entities and the public to submit contributions, and comments, as part of a consultative process to modernise the VAT administrative framework. Comments may be submitted by close of business on 31 October 2023 to [email protected].

2023

Discussion Paper on Value-Added Tax Modernisation

SARS has published a Discussion Paper on VAT Modernisation. This is in pursuit of its strategic objective of modernising its systems to provide digital and streamlined online services and making it easy for taxpayers to comply with their obligations. This discussion paper sets out the high-level vision for the modernisation of the South African Value-Added Tax (VAT) administrative framework.

The intention of publishing the discussion paper is to invite businesses (vendors), accounting system software developers or suppliers, technology entities, recognised controlling bodies, public finance entities, municipal finance entities and the public to submit contributions, and comments, as part of a consultative process to modernise the VAT administrative framework.

Comments may be submitted by close of business on 31 October 2023 to [email protected].

2021
Proposed Model for Establishing an Advance Pricing Agreement Programme in South Africa and Release of Draft Legislation This document seeks to provide a high-level model and draft legislative framework for an advance pricing agreement (APA) unit and associated processes at SARS and the introduction of an APA programme in South Africa. Comments may be submitted by close of business on 31 January 2022 to [email protected].
Advance Tax Rulings System (Invitation for Comment)
2020
Discussion Paper on Advance Pricing Agreements
Discussion paper on reviewing the tax treatment of excessive debt financing, interest deductions and other financial payments On 9 April 2020, National Treasury issued a media statement extending the submission date for public comments of the following 2020 tax proposals, “Tax Treatment of Excessive Debt Financing, Interest Deductions and Other Financial Payments” from 17 April 2020 to 29 May 2020. Due to the subsequent postponement of the implementation of the effective date of this proposal from 1 January 2021 to 1 January 2022, the deadline for submission of public comments is hereby further extended from 29 May to 30 September 2020. The due date for comments in respect of the proposal to introduce export taxes on scrap metal remains as 29 May 2020. Please forward written comments to the National Treasury’s tax policy depository at [email protected] and to Hayley Reynolds, National Treasury at [email protected].
2019
SARS discussion document on the rewrite of the Excise legislation The accompanying note has been updated to reflect an extension to the due date for comments.
Consultation paper on policy proposals for crypto assets
Media statement on the consultation paper on policy proposals for crypto assets
2017
Discussion paper on the review of the diesel fuel tax refund system
Media statement on the publication of the discussion document on the review of the diesel fuel tax refund system
2014
Discussion Paper on the Review of the Taxation of Alcoholic Beverages in South Africa Media Release
Discussion Paper on the VAT Treatment of Loyalty Programmes
2013
~~2013 Retirement Reform Proposals~~ (Archived on 19 January 2016)
2011
~~Discussion Paper on Interpretation Note 6 – Place of Effective Management~~
~~Conversion of medical deductions to medical tax credits~~
2009
Physical impairment and disability expenses and criteria for diagnosis of disability
Proposed Policy resulting from non-compliance with section 11(3) to the Value-Added Tax Act, 1991
2008
Deemed income tax deductions for international subsistence expenses
2005
Recognition of produce held by wine farmers in a pool
Tax avoidance and section 103 of the Income Tax Act, 1962
2004
Tax Treatment of Securitisation
Reportable Arrangements
2003
Regulating tax practitioners
A proposed system for Advance Tax Rulings

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