Pending Clarification of Final Tax Amendments
PAGSA Newsflash 2022-03 discussed the simpler changes made by the 2021 tax amendment Acts that were published on 19 January 2022 and indicated that there are two complicated amendments that the PAGSA has been discussing with the authorities for some time to get clarity. The two amendments that require specialised attention are:
1.The extension to the reduction of the value of the ‘long services award’
2.The amendments to the ETI Act, in particular to the definition of “monthly remuneration”. This Newsflash is to update you on where we are, and the bad news is that we do not yet have answers. The problems arose in very late changes made by the Standing Committee of Finance to the final Taxation Laws Amendment Bill that was tabled in the National Assembly in November 2021. Discussions with the authorities have been underway since soon after the final Bills that were submitted to the National Assembly were published. SARS are doing their best to clarify the uncertainties and to provide solutions where there are implementation problems. The only indication that I can give with a reasonable degree of certainty is that we should have clarity by the end of this week. Newsflashes will be issued immediately to update you as soon as we have clarity. I am very well aware (as are the authorities) that the new tax year starts on Tuesday next week and apologise for the pressure that this places on you and your development team. Regards,
Rob Cooper
Chairman Payroll Authors Group of South Africa
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