Pretoria - National Treasury has released for public comment a draft of the 2011 Taxation Laws Amendment Bills (TLAB), which includes a personal income tax relief.
The draft was released on Thursday, which gives effect to the budget review tax proposals that were announced in the Budget in February.
"The TLAB 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. These outstanding matters will be covered by separate legislation in the form of a second set of bills," said Treasury.
The draft TLAB is published for public comment before formal introduction in Parliament. The Standing Committee of Finance (SCOF) convenes informal hearings on these draft bills and considers public comments received.
The National Treasury and SARS will consider all the comments received, and thereafter submit a response document to the SCOF in August, said Treasury.
"The draft Bills are then revised and formally introduced in Parliament by the Minister of Finance (expected to be in early September)."
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; 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 can be found on the National Treasury (www.treasury.gov.za) and South African Revenue Services (www.sars.gov.za) websites.
