The National Treasury and the South African Revenue Service (SARS) published the 2026 draft Taxation Laws Amendment Bill (TLAB) and the 2026 draft Tax Administration Laws Amendment Bill (TALAB) for public comment on 30 July 2026. The draft bills give legislative form to the tax proposals announced in the 2026 Budget on 25 February 2026. Written comments are due by close of business on 28 August 2026.
What the draft TLAB proposes
The 2026 draft TLAB implements the announcements made in Chapter 4 and Annexure C of the 2026 Budget Review, together with technical corrections. The key proposals are these.
Living annuities and the de minimis limit. The prescribed de minimis limit would be determined on a cumulative basis where an annuitant holds multiple living annuities with the same insurer or fund. The change is aimed at consistent application of the rule and at protecting retirement income.
Donations tax and non-resident spouses. The inter-spousal donations tax exemption would be limited to donations made to a spouse who is a South African tax resident. The stated aim is to stop spouses from staggering their cessation of tax residence to avoid donations tax and capital gains tax.
Special economic zones. The current anti-profit-shifting rule would be replaced with the arm's length principle for domestic transactions between SEZ companies qualifying for the 15 per cent corporate income tax rate and related companies outside the zone. This introduces domestic transfer pricing rules into the SEZ regime.
Leasehold improvements. The VAT Act would be amended to extend the claw-back mechanism to lessors who are not registered vendors, through a specific declaration process that closes the gap arising when a landlord is not registered for VAT.
Carbon budget refunds. Refunds for the first two tax periods could be claimed in the third year, and refunds for years three to five in the sixth year, replacing the current reference to the immediately preceding tax period.
What the draft TALAB proposes
The 2026 draft TALAB deals with the tax administration announcements in Annexure C of the 2026 Budget Review. Its key proposals are these.
Electronic ATA Carnets. An enabling provision would allow South Africa to implement fully digitised ATA Carnets for the temporary admission of goods, in line with the electronic carnet project of the World Customs Organisation and the International Chamber of Commerce.
Second-hand goods documentation. Documentation requirements for second-hand goods vendors would be extended to align with those prescribed under the Second-Hand Goods Act, to mitigate fraudulent notional input tax claims.
Bank screening of refunds. Banks, which must already report suspicious tax refunds to SARS and hold them for up to two business days, would be explicitly permitted to screen refunds before or after deposit to smooth the refund process.
Voluntary disclosure and interest. Applicants for voluntary disclosure relief could simultaneously apply for the separate remission of interest on the defaults disclosed in their application.
One Budget proposal held back
The proposal on the supply of gold to banks, announced in the 2026 Budget Review, is not included in the 2026 draft TLAB. The National Treasury states that it requires further consultation and consideration.
How to comment
Comments on both draft bills must reach the National Treasury's tax policy depository at AnnexCProposals@zatreasury.onmicrosoft.com and SARS at acollins@sars.gov.za by close of business on 28 August 2026. The draft bills and their explanatory memoranda contain the comprehensive description of the proposed amendments.