National Treasury responded to the comments at hearings of the Standing Committee on Finance on 14 September 2017. The comments were insightful and resulted in significant revisions of particular tax proposals. All proposals are still subject to the final approval of the Minister of Finance and the Standing Committee on Finance in Parliament.
The discussion of the foreign income exemption can be found on page 6 – 9 and slides 5 – 10 of the respective documents. There are two significant revisions to this proposal:
- An exemption of R1 million rand per year to alleviate the potential impact on foreign-based SA tax residents, and
- An extension of the implementation date to 1 March 2020 to give additional time to arrange financial affairs.
The draft Taxation Laws Amendment Bill will be revised before tabling of the draft bill – subject to final approval.