South Africa: Tax measures in 2016 budget

South Africa: Tax measures in 2016 budget

The Finance Minister on 24 February 2016 delivered the budget for 2016. Among the tax provisions in the budget are measures concerning:

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  • Capital gains tax—effective 1 March 2016, the rates will increase for individuals to 40%, and for companies and trusts to 80%
  • Voluntary disclosure rules—effective 1 October 2016 and for a six-month period—for taxpayers to “regularize” their foreign assets and income
  • An anti-avoidance regime for corporate share disposals
  • Industry-specific proposals for financial services concerning hedge funds, securities lending arrangements, real estate investment trusts (REITs), hybrid debt instruments, third-party backed share provisions, solvency arrangements for long-term insurers
  • Business tax incentives including venture capital for small business, urban development zones, a three-year accelerated depreciation allowance for oil and gas refineries, research and development (R&D) tax incentives

The 2016 budget includes other measures concerning international taxation, value added tax (VAT), customs, and other provisions.

 

Read a February 2016 report [PDF 258 KB] prepared by the KPMG member firm in South Africa: Responsible Tax for the Common Good: KPMG’s 2016 BudgetWatch

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