6 June 2011
The National Treasury has released a draft of the 2011 Taxation Laws Amendment Bills (TLAB), which includes personal income tax relief, for public comment.
The draft was released on Thursday, which gives effect to the budget review tax proposals that were announced in the Budget in February.
“The [draft] includes most, but not all the 2011 Budget proposals, as some proposals require further work or consultation; the taxation of gambling winnings and contributions to retirement funds are thus not included,” the Treasury said in a statement this week.
“These outstanding matters will be covered by separate legislation in the form of a second set of bills.”
The draft is published for public comment before formal introduction in Parliament. The standing committee on finance convenes informal hearings on these draft bills and considers public comments received.
The National Treasury and the South African Revenue Service (Sars) will consider all the comments received, and thereafter submit a response document to the standing committee in August.
“The draft Bills are then revised and formally introduced in Parliament by the minister of finance [expected to be in early September],” the Treasury said.
Tax bracket adjustments
The draft legislation deals with personal income tax relief through adjustments to the personal income tax brackets and rebates amounting to R8.1-billion, and the introduction of a third rebate of R2 000 per year for taxpayers 75 years and older.
It also proposes an increase in the tax-free interest-income annual threshold from R22 300 to R22 800 for individuals below 65 years and from R32 000 to R33 000 for individuals aged 65 years and older, among other matters.
The draft legislation and explanatory memorandum can be found on the National Treasury website www.treasury.gov.za.