New tax regime takes effect today :: Mmegi Online

Company tax reforms, which include the institution of a flat 25 percent tax rate and the reduction of the withholding tax to 7.5 percent, come into being from today, although the government will have to seek the approval of Parliament retrospectively BusinessWeek has learnt.

The tax year begins today and for planning purposes, any changes to tax law are required to begin today. Having failed to present the reforms to the last sitting of the House, the government is expected to approach legislators in the winter session that begins on July 5 (Monday).The reforms - the result of an 18-month-long consultative process between Government and the private sector - have stalled over the latter's fear that millions of pula in tax credits could disappear into the system when the new regime kicks in.

High level and drawn out discussions between finance ministry, BURS and BOCCIM have revolved around the status quo of tax credits earned by the private sector and what will happen to these when the two tier system is abolished.

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New tax regime takes effect today

Company tax reforms, which include the institution of a flat 25 percent tax rate and the reduction of the withholding tax to 7.5 percent, come into being from today, although the government will have to seek the approval of Parliament retrospectively BusinessWeek has learnt.

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