Below is a summary of the tax proposals that were delivered by Finance Minister Pravin Gordhan at the National Budget address on 22 February 2017. This is a high level overview of the changes.
Mining rehabilitation funds:
Mining companies are allowed to deduct contributions made to mining rehabilitation trusts. Amendments are proposed to take into account recent National Environmental Management Act regulations for financial provisioning for the rehabilitation, management and effects of mine closures. Further measures are also proposed to curb abuse of tax-deductible contributions.
Tax relief from donations tax and capital gains tax for land donated for land-reform initiatives, as part of the National Development Plan, will be extended to allow partial ownership of land to be transferred under certain circumstances.
Venture capital regime:
It is proposed that changes to the venture capital regime will be made to remove impediments to investment, including rules relating to investment returns and the qualifying company test.
© 2018 KPMG Services (Pty) Limited, a South Africa private company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.