African Tax Administration Forum discusses digital economy taxation

On August 26, 2020, South Africa’s Deputy Minister of Finance, David Masondo, participated at the 4th African Tax Administration Forum High-level Tax Policy Dialogue.

Masondo said that the National Treasury and SARS appeared in Parliament in June 2020 to discuss the issues within the digital economy and the implications for tax policy affecting the generation of new income tax revenue.

During these discussions, National Treasury advised Parliament that South Africa has opted not to introduce any unilateral measures to deal with direct tax treatment of the challenges of the digital economy for now. South Africa has opted to wait for multilateral consensus or solutions to be published in the final report on tax challenges arising from digitalisation which is due in 2020, he said.

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