South Africa

Details

  • Service: Tax, Corporate and Business Tax
  • Type: Regulatory update
  • Date: 2010/10/06

Corporate Tax

KPMG’s Corporate Tax practice provides a wide range of taxation services to clients in several sectors including financial services, mining, as well as consumer and industrial markets.

The Companies Act 71 of 2008 (the Act) 

On 28 September 2010, the Department of Trade and Industry (DTI) issued a statement announcing that the general implementation date of the Act will be deferred to 1 April 2011 (the Notice”).

According to the Notice, the postponement will:

 

  • enable the DTI to effectively administer the Act
  • give business and the public time to prepare for compliance with the Act
  • allow for the finalisation of the regulations, which will include further consultation with stakeholders.

 

The Notice provides that the postponement only relates to the general implementation of the various provisions of the Act and does not extend to the establishment of the Companies and Intellectual Property Commission, which will commence with its administrative operations in the third quarter of 2010.

 

While the Notice now gives some certainty as to when the Act will take effect, there has still been no gazetted effective date as required in the Act.  Further, the proposed amendments to the Act (as set out in the Companies Amendment Bill published in July 2010) as well as the regulations are still to be finalised. As such, the proposed implementation date of 1 April 2011, in our view, will only give business sufficient time to prepare if the Companies Amendment Bill and regulations are finalised without any further delay.