Given the seemingly unending emphasis on financial regulation and impact on businesses, it is important that employers keep tabs on changes to tax laws – and therefore employers must be cognisant of the published Draft Taxation Laws Amendment Bill 2017 and Draft Tax Administration Laws Amendment Bill 2017.

These draft Bills give effect to the tax proposals announced on Budget Day, 22 February 2017.

As the vanguard of HR and HCM legislation and technology, our main concern is to make sure our customers and clients understand the implications of this revised legislation.

To help, we have outlined some of the main tax proposals in the Taxation Laws Amendment Bill 2017 (TLAB), as published on SARS and National Treasury’s website for public comment, that will have an impact on employers and payroll.

  • Tax relief for bargaining councils regarding tax non-compliance.
  • Changes to the anti-avoidance rules for certain share schemes, mainly trusts.
  • A higher fringe benefit exemption for bursaries to learners with disabilities.
  • Removing the foreign employment income tax exemption in respect of South African residents.
    * Postponement of annualisation requirement for provident funds to 1 March 2019.
    * Clarifying the hours used for the ‘160-hour’ determination of the section of the Employment Tax Incentive Act in respect of Compliance with wage regulation measures, are the hours defined as ‘ordinary hours’ by the Basic Conditions of Employment Act.

The main tax proposals in the Tax Administration Laws Amendment Bill 2017 (TALAB) that can have an impact on employers and payroll are:

  • To include only the portion of the travel reimbursement that is calculated at a rate per kilometre that exceeds the prescribed rate per kilometre in remuneration.
  • To spread the R350 000 pa monetary cap that limits the deduction allowed in respect of contributions to retirement funds over 12 months.

For any more details or assistance, contact our legislation team at info@crs.co.za if you require additional information.