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Exchange Control Amnesty and Amendment of Taxation Laws Act, 2003 (Act No. 12 of 2003)

 

 

Notice No. 730

31 May 2003

 

(English text signed by the President.)

(Assented to on 30 May 2003.)

 

It is hereby notified that the President has assented to the following Act, which is hereby published for general information:

 

To provide for exchange control amnesty with accompanying tax measures in respect of voluntary disclosure by an applicant of any contravention of the Exchange Control Regulations or failure to comply with the provisions of the Estate Duty Act, 1955, or the Income Tax Act, 1962, to the extent that it relates to foreign assets: to amend the Transfer Duty Act, 1949, so as to adjust the rates of duty: to fix the rates of normal tax payable by persons other than companies in respect of taxable income for the years of assessment ending on 29 February 2004 and by companies in respect of taxable income for the years of assessment ending during the 12 months ending on 31 March 2004; to amend the Income Tax Act, 1963, so as to amend a definition; to further regulate the provisions relating to secrecy to provide for exchange of information between the South African Revenue Service and the South African Reserve Bank; to increase the primary and secondary rebates; to further regulate the exemption in respect of interest and foreign dividends: to increase the income threshold of small business corporations; to further regulate the secondary tax on companies where a company ceases to be a resident; to amend the Customs and Excise Act, 1964, so as to further regulate the provisions relating to secrecy to provide for exchange of information between the South African Revenue Service and the South African Reserve Bank; to increase the rate of the air passenger tax; and to amend Schedule No. 1 to the said Act and the effective date thereof : to amend the Stamp Duties Act, 1968, so as to delete a definition and to amend a definition : to abolish stamp duty on certain instruments : and to effect certain consequential amendments: to amend the South African Reserve Bank Act, 1989, so as to further regulate the provisions relating to secrecy to provide for exchange of information between the South African Reserve Bank and the South African Revenue Service; to amend the Value-Added Tax Act, 1991, so as to increase the threshold of rental income in the definition of "commercial accommodation"; to further regulate the provisions relating to secrecy to provide for exchange of information between the South African Revenue Service and the South African Reserve Bank; to amend the Tax on Retirement Funds Act, 1996, so as to reduce the rate at which the tax on retirement funds is imposed; to provide for the continuation of amendments to the Schedules to the Customs and Excise Act, 1964: to provide for a short title and commencement date of this Act: and to provide for matters connected therewith.

 

 

PREAMBLE

 

RECOGNISING that the objectives of the exchange control amnesty and accompanying tax measures are-

a) to enable violators of Exchange Control Regulations and certain tax Acts to regularise their affairs in respect of foreign assets attributable to those violations;
b) to ensure maximum disclosure of foreign assets and to facilitate repatriation thereof to the Republic; and
c) to extend the tax base by disclosing previously unreported foreign assets.

 

BE IT THEREFORE ENACTED by the Parliament of the Republic of South Africa as follows:-