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South Africa: Sunset clauses proposed for certain tax incentives

South Africa: Sunset clauses proposed

Proposals in the 2020 Draft Taxation Laws Amendment Bill would introduce “sunset clauses” for certain tax incentives. If enacted, the identified tax incentives would be available for years of assessments ending on or before 28 February 2022.


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As announced in the 2020 budget speech, the government is reviewing various tax incentives to determine their effectiveness and whether to extend a particular incentive. Some incentives that currently do not contain a sunset clause would be given a sunset date of 28 February 2022.

Among the tax incentives potentially affected by the proposed sunset clauses are the following: 

  • The allowance of 20% per annum in respect of rolling stock
  • The allowance of 5% per annum in respect of airport and port assets
  • The allowance of 10% of any amount owed by an employee to a taxpayer in respect of the disposal of low-cost residential units to that employee

Read an August 2020 report [PDF 110 KB] prepared by the KPMG member firm in South Africa

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