This reform also allows limited access to funds in cases of financial hardship without necessitating resignation from employment.

The new two-pot retirement system aims to establish a more sustainable fund structure while offering flexibility to meet the diverse needs of members. It provides a safety net for individuals facing genuine financial crises, enabling them to access emergency funds without turning to predatory lenders or forfeiting their jobs to tap into their retirement savings, all while safeguarding a significant portion of those savings for retirement.

Currently, retirement funds and trustees are in the process of adjusting their fund rules in line with the legislative changes. ​ They are expected to communicate these rule modifications and the procedures for withdrawing savings benefits to fund members. ​ Before implementation, any amendments to fund rules must receive approval from the Financial Sector Conduct Authority. ​ Most funds are on track to implement the new contribution split into the two components (savings and retirement) on 1 September 2024, as scheduled. ​ They will calculate the seeding capital value based on the vested component as of 31 August 2024, allowing for transfer to the savings component and member access from 1 September 2024. However, some funds may not be immediately equipped to process withdrawal requests on the designated date due to new systems or installation processes. ​Funds prepared for withdrawals will also require time to handle requests efficiently.

National Treasury advises fund members to seek reliable financial guidance to understand the implications of withdrawals from the savings component. ​Members should be aware that administration costs and marginal tax rates will be deducted from such withdrawals, resulting in the loss of potential future growth and the original retirement benefits intended for those funds. ​

The importance of aligning AGOA with the Africa Continental Free Trade Area (AfCFTA) was underscored, emphasizing the need for a cohesive economic structure to boost intra-African trade and integrate regional economies into the global market.

Deputy Minister Andrew Whitfield was praised for his adept facilitation during the AGOA host nation selection process for 2025, navigating a challenging environment to achieve a balanced outcome. ​ Meanwhile, Deputy Minister Zuko Godlimpi represented South Africa at the BRICS+ Trade Ministers Meeting, where discussions centered on climate change, e-commerce’s potential for economic growth, and the role of Special Economic Zones (SEZs) in driving investment.

Both engagements highlighted the significance of cooperative trade relations in shaping a more equitable and sustainable global economy. ​ South Africa’s commitment to transparent and strategic partnerships with global counterparts aligns with key frameworks such as the Sustainable Development Goals (SDGs) and the Paris Climate Accord, emphasizing a vision for comprehensive development and positive transformation on the continent through initiatives like the AfCFTA.

This ruling aims to provide clear guidance on the limitation of set-off for companies under section 20(1)(a)(i) as amended by the Taxation Laws Amendment Act 20 of 2021.

The ruling clarifies that an assessed loss occurs when deductions claimed by a taxpayer exceed its income for the relevant year of assessment. ​ Section 20(1)(a) allows companies to offset the balance of assessed loss against income derived from carrying on any trade, with certain limitations on the set-off amount. Notably, the 80% (max R1 Million) limitation in section 20(1)(a)(i) is based on the company’s taxable income, including taxable capital gains.

By emphasizing that the calculation of the 80% limitation amount should be based on the comprehensive definition of “taxable income” as outlined in section 1(1), which encompasses taxable capital gains, the ruling aims to ensure consistency in the application of tax laws.

This ruling, issued under section 89 of the Tax Administration Act 28 of 2011, will remain valid from the date of publication until any revisions are made. It provides valuable insights for companies navigating the complexities of assessing taxable income and setting off assessed losses within the framework of the Income Tax Act.

Overall, the SARS ruling serves as a crucial reference point for companies seeking clarity on tax implications related to assessed losses and taxable income, contributing to a more transparent and consistent tax environment in South Africa.

These incentives aim to encourage investment in renewable energy projects, support sustainable practices, and drive economic growth in the renewable energy sector. The guide emphasizes the importance of adhering to regulations to maximize benefits and prevent double deductions, highlighting the government’s commitment to promoting a greener economy and transitioning towards cleaner energy sources.