Global Daily Tax News, South Africa Mulling Collective Investment Scheme Tax Changes, (Nov 18, 2024)

South Africa's National Treasury has released a consultation paper on changes to the tax treatment of collective investment schemes.

The discussion document on the tax treatment of collective investment schemes is intended to garner feedback on a review into the income tax treatment of amounts received by portfolios of collective investment schemes.

In 2018, amendments were proposed in the Taxation Laws Amendment Bill to provide certainty on when these amounts should be treated as revenue instead of capital, which would impact the tax treatment of those amounts.

After consultations, the Government opted to withdraw the proposed amendments to allow additional time to engage with industry to find solutions that will not negatively affect stakeholders.

The document sets out issues with the current rules and puts forward various policy options. Comments are being welcomed until December 13, 2024.