There will be in a delay in the implementation of preservation reforms, including the increase in the contribution cap to 27.5% announced earlier, as well as the simplification of contributions between the different retirement funds and between employer and employees.
On 16 October, the National Treasury published the revised draft Taxation Laws Amendment Bill, 2014, (TLAB) revised draft Tax Administration Laws Amendment Bill 2014, (TALAB) and the draft Response Document that was presented to the Standing Committee on Finance (SCOF) in Parliament on 15 October 2014.
During the hearings in Parliament, the SCOF made recommendations on the implementation dates for the tax treatment of retirement savings and the removal of VAT zero rating for agricultural goods. The Bill has been updated based on these two recommendations.
With regard to the tax treatment of retirement fund contributions, Government has agreed to delay the implementation of laws which was originally set for 1 March 2015. For now, the delay will be for a year to allow for further consultations at NEDLAC. But should there be no agreement at NEDLAC by the end of June 2015, the implementation date may be moved to 1 March 2017.
All relevant documentation is published on http://www.treasury.gov.za/.
