Launch of Special Voluntary Disclosure Programme (SVDP)

National Treasury released the following media statement on the special VDP for offshore assets.

For access to the entire media statement, please click here.

SARS have also updated the guide for special VDP, please click here to access the guide.

Interestingly, the last version of the bill that proposed to include to the special VDP required a 50% inclusion of the highest market value of the offshore assets prior to 2015. Both the SARS guide and the National Treasury Media release refers to a 40% inclusion rate. In addition, the current version of the bill that seeks to introduce the special VDP into law states that the window period for applications will be 1 October 2016 to 31 March 2017, while the SARS guide indicates that the window period will be 1 October 2016 to 31 June 2017.

While the functionality for the special VDP is available  on e-filing, the law is not yet in place to back it up. These are uncertain times and taxpayers would be well advised to proceed with caution.

Draft Taxation Laws Amendment Bill, 2016: (second batch) Revisions and Additions for Public Comment

Notable revisions include:

  • Changes to section 7C (trusts and loan accounts) to remove the deemed interest imputation for loans to trust and replacing same with a deemed donation provision and removing the R100 000 annual donations tax exclusion prohibition.
  • Extension of the Employment Tax Incentive to 28 February 2019;
  • Dividends on restricted equity instrument will no longer all be deemed remuneration. The proviso to the income tax exemption for dividends will however still apply in limited circumstances.

For access to the entire revision, please click here.