Taxand South Africa explores proposed amendments to the rules dealing with the taxation of employee-based incentive plans.
The Draft Taxation Laws Amendment Bill of 2016 was released for public comment on Friday 8 July (the “2016 TLAB”). It proposes certain amendments to the rules currently contained in the Income Tax Act No. 58 of 1962 (the “Act”) dealing with employee-based incentive plans.
Some of these proposed changes were foreshadowed by announcements made by the Minister of Finance in the 2016 Budget Speech, namely that:
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.
Employers should carefully consider their employees’ tax withholding obligations, as well as the timing and amount of deductions to which they may be entitled in respect of expenditure incurred by them in connection with their employee incentive arrangements.