The National Treasury and SARS have published the revised 2023 Draft Revenue Laws Amendment Bill and 2023 Draft Revenue Administration and Pension Laws Amendment Bill for public comment.
- These bills provide the necessary legislative amendments required to implement the first phase of the “two-pot” retirement system, which aims to improve retirement outcomes for South Africans.
- The revised 2023 Draft Revenue Laws Amendment Bill includes key tax proposals, such as the proposed implementation date of the “two-pot” retirement system on March 1, 2024, and the proposal for seed capital to limit the adverse effect on liquidity.
- The 2023 Draft Revenue Administration and Pension Laws Amendment Bill contains consequential legislative amendments to the Pension Funds Act, 1956, to ensure the smooth implementation and administration of the “two-pot” retirement system.
- The due date for public comments is July 15, 2023, and stakeholders are invited to submit their written comments to the National Treasury and SARS.
- After receipt of written comments, National Treasury and SARS will engage relevant stakeholders through public workshops to discuss the written comments on the draft bills.
- The Standing Committee on Finance and the Select Committee on Finance in Parliament are expected to make a similar call for public comment later in the year and convene public hearings on the revised draft bills.
- A response document on the comments received will be presented at the Parliamentary committee hearings, after which the bills will then be revised considering public comments and recommendations made during committee hearings before they are introduced formally in Parliament for consideration.
- More details on how the new plan works with various scenarios are available on Treasury’s website